Full text of "San Francisco Administrative Code, Part 3"

CITY AND COUNTY OF

SAN FRANCISCO

MUNICIPAL CODE

ADMINISTRATIVE CODE

VOLUME III

MUNICIPAL CODE CORPORATION

Tallahassee, Florida

2006

ADMINISTRATIVE CODE
TABLE OF CONTENTS

Chapter Page

VOLUME ONE

1. General Provisions 7

2. Board of Supervisors 43

2A. Executive Branch 175

2B. Assessment Appeals Boards (Tax Appeal Boards) 441

3. Budget Procedures 473

4. City Buildings, Equipment and Vehicles 501

5. Committees 525

6. Public Works Contracting Policies and Procedures 847

7. Disaster Council 951

8. Documents, Records and Publications 981

9A. Farmers' Market 1031

9B. Flea Market 1055

10. Finance, Taxation and Other Fiscal Matters 1065

lOA. Pilot Foot Patrol Program 1457

lOB. Special Law Enforcement and Public Works Services 1467

IOC. Reimbursement for Towing and Storage of Vehicles 1485

lOD. [Reserved] 1509

lOE. Downtown Plan Monitoring 1519

lOF. 1660 Mission Street Surcharge 1543

lOG. Board of Appeals Surcharge for Permits and Fees 1561

lOH. Recovery of Costs of Emergency Response 1583

VOLUME TWO

11. Franchises 1691

12. Housing Authority 1801

12A. Human Rights Commission 1813

12B. Nondiscrimination in Contracts 1833

12C. Nondiscrimination in Property Contracts 1859

12D. MinorityAVomen/Local Business Utilization 1877

111:1 Supp. No. 12, November/December 2007

San Francisco - Administrative Code 111:2

Chapter Page

12E. City Employee's Sexual Privacy Ordinance 2001

12F. Implementing the MacBride Principles — Northern Ireland 2009

12G. Prohibition on Use of Public Funds for Political Activity by

Recipients of City Contracts, Grants, and Loans 2023

12H. Immigration Status 2031

121. [Reserved] 2043

12J. City Business with Burma Prohibited 2053

12K. Local Implementation of the United Nations Convention on the
Elimination of All Forms of Discrimination Against Women

(CEDAW) 2075

12L. Public Access to Records and Meetings of Nonprofit Organizations . . 2095

12M. Protection of Private Information 2109

12N. Lesbian, Gay, Bisexual, Transgender, Queer, and Questioning Youth:

Youth Services Sensitivity Training 2119

120. Earned Income Credit Information 2129

12P. Minimum Compensation 2139

12Q. Health Care Accountability 2163

12R. Minimum Wage 2187

12S. Working Families Credit Program 2199

12T. [Reserved] 2209

12U. Sweatfree Contracting 2219

12V. Personal Services Minimum Contractual Rate Ordinances 2227

12W. Sick Leave 2231

12X. Policy Making Marijuana Offenses the Lowest Law^ Enforcement

Priority 2235

12Y. San Francisco Slavery Disclosure Ordinance 2236.5

13. Jails and Prisoners 2237

14. San Francisco Health Care Security Ordinance 2295

14A. Disadvantaged Business Enterprise Program 2305

14B. Local Business Enterprise and Non-Discrimination in Contracting

Ordinance 2329

15. Mental Health Service 2341

16. Officers and Employees Generally 2361

17. Public Off-Street Parking Facilities 2719

Supp. No. 12, November/December 2007

111:3 Table of Contents

Chapter Page

18. Payroll Procedure 2755

19. Community Safety Camera Ordinance 2769

19A. Public Health 2779

20. Social Services 2799

21. Acquisition of Commodities and Services 3023

21A. [Reserved] 3087

21B. [Reserved] 3097

21C. Price Adjustments in the Award of City Procurement Contracts to

Reflect Direct Sales Tax and Business Tax Revenues for the City, the
San Francisco Unified School District, the San Francisco
Community College District, and the San Francisco Transportation

Authority 3105

21D. [Reserved] , 3113

21E. [Reserved] 3123

21F. [Reserved] 3133

21G. [Reserved] 3143

22. Radio Communication Facilities 3153

22A. [Reserved] 3159

22B. Telecommunications Facilities 3169

22C. Public Internet Access 3177

23. Real Property Transactions 3187

23A. Surplus City Property Ordinance 3275

24. Redevelopment Agency 3301

24A. Administrative Structure Local Rent Supplement Program in the

Office of Mayor 3315

24B. Relocation Appeals Board 3337

25. Street Lighting 3353

26. Deemed Approved Off-Street Alcohol Use Nuisance Regulations 3363

27. [Reserved] 3373

28. Administrative Debarment Procedure 3383

29. Findings of Fiscal Responsibility and Feasibility 3395

30. Centralization of Workforce Development 3409

VOLUME THREE

31. California Environmental Quality Act Procedures and Fees 3425

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San Francisco - Administrative Code 111:4

Chapter Page

32. Residential Rehabilitation Loan Program 3503

33. Commission on the Status of Women 3597

34. Notification to Assessor Concerning Zoning Reclassifications of
Property, Conditional Use Permits and Variances 3613

35. Residential and Industrial Compatibility and Protection Ordinance . 3635

36. Community Improvements Area Plans and Programs; 3645

37. Residential Rent Stabilization and Arbitration Ordinance 3655

37A. Residential Rent Stabilization and Arbitration Fee 3717

38. Transit Impact Development Fee 3729

39. [Reserved] 3761

40. Housing Code Enforcement Loan Program 3771

41. Residential Hotel Unit Conversion and Demolition 3859

41A. Apartment Unit Conversion Ordinance 3901

41B. [Reserved] 3917

41C. Time-Share Conversion Ordinance 3927

41D. Residential Hotel Visitor Policies 3935

41E. Residential Hotel Mail Receptacle Ordinance 3949

41F. Tourist Hotel Conversion 3959

42. Industrial Development Authority 3967

43. Municipal Finance Law 3979

44. Adult Day Health Care Planning Council 4071

45. Jury Fees 4079

46. [Reserved] 4089

47. [Reserved] 4099

48. [Reserved] 4109

49. Security Deposits for Residential Rental Property 4119

49A. Residential Tenant Communications 4131

49B. Residential Rental Units: Lock Replacements by Landlord When

Tenants Vacate 4141

50. Nonprofit Performing Arts Loan Program 4151

51. Voluntary Arts Contributions Program 4197

52. [Reserved] 4203

53. [Reserved] 4213

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111:5 Table of Contents

Chapter Page

54. Southeast Community Facility Commission 4223

55. [Reserved] 4237

56. Development Agreements 4247

57. Film Commission 4283

58. [Reserved] 4291

59. [Reserved] 4301

60. Assisted Housing Preservation Ordinance 4311

61 . Waterfront Land Use 4355

62. Domestic Partnerships 4371

63. Limitations on Water Use for Landscaping in New Developments

and Landscaping Renovations 4387

64. City Employee and City Contractor Safety and Health 4399

65. Rent Reduction and Relocation Plan For Tenants Inconvenienced
by Seismic Work Performed Pursuant to Chapters 14 and 15 of the

San Francisco Building Code 4409

66. Seismic Safety Retrofit Program 4417

66A. Seismic Safety Loan Program 4427

67. The San Francisco Sunshine Ordinance of 1999 4451

67A. Cell Phones, Pagers and Similar Sound-Producing Electrical De-
vices 4523

68. Cultural Equity Endowment Fund 4531

69. San Francisco Health Authority 4547

70. In-Home Supportive Services Public Authority 4559

71. Mills Act Contract Procedures 4573

72. Relocation Assistance for Lead Hazard Remediation 4587

73. [Reserved] 4611

74. Rent Escrow Account Program 4621

75. [Reserved] 4639

76. [Reserved] 4649

77. Building Inspection Commission Appeals 4659

78. Department of Building Inspection Permit Tracking System 4675

79. Preapproval Notice for Certain City Projects 4683

80. [Reserved] 4697

Supp. No. 16, April 2008

San Francisco - Administrative Code 111:6

Chapter Page

81. [Reserved] 4707

82. [Reserved] 4717

83. First Source Hiring Program 4727

84. San Francisco Residential Rent Assistance Program for Persons Dis-
qualified from Federal Rent Subsidy Programs by the Federal Qual-
ity Housing and Work Responsibility Act of 1998 (QHWRA) 4755

85. [Reserved] 4769

86. Children and Families First Commission 4779

87. Fair Housing Implementation Ordinance 4791

88. Performance and Review Ordinance of 1999 4801

89. Department of Child Support Services 4815

VOLUME FOUR

90. Entertainment Commission 4823

91. Equal Access to Services 4837

92. Real Estate Loan Counseling and Education 4851

93. [Reserved] 4863

94. [Reserved] 4873

95. Identification Cards 4883

96. Coordination between the Police Department and the Office of Citi-
zen Complaints 4895

97. Healthcare Impact Reports 4909

98. The Better Streets Policy 4915

99. Public Power in New City Developments 4919

100. Procedures Governing the Imposition of Administrative Fines 4920.1

Appendices: Initiative Ordinances 4921

Index 6299

Supp. No. 16, April 2008

CHAPTER 31: CALIFORNIA ENVIRONMENTAL QUALITY
ACT PROCEDURES AND FEES

Article Page

L GENERAL PROVISIONS 3427

IL PROJECTS COVERED 3439

m. EVALUATIONS 3449

IV. FEES 3471

V. SEVERABILITY 3483

APPENDIX 3493

3425

San Francisco - Administrative Code

[INTENTIONALLY LEFT BLANK]

ARTICLE I: GENERAL PROVISIONS

Sec. 31.01. Authority and Mandate.

Sec. 31.02. Policies and Objectives.

Sec. 31.03. Scope of Requirements.

Sec. 31.04. Responsibility.

Sec. 31.05. Office of Environmental Review.

Editor's Note:

Ordinance 40-01, File No. 001007, App. 3/16/2001
repealed former Chapter 31 in its entirety. Most of the
provisions set forth in this chapter are similar to but not
identical to or derivative from those repealed provi-
sions. The Code user should therefore consult the
derivation and disposition tables set forth as an appen-
dix to this chapter for corresponding provisions. The
legislative history of the former Code Sections can then
be located in their numerical sequence in the text of
each article.

SEC. 31.01.
MANDATE.

AUTHORITY AND

(a) This Chapter is adopted pursuant to the
California Environmental Quality Act, Public
Resources Code Sections 21000 and following, as
amended; and pursuant to the Guidelines for
Implementation of the California Environmental
Quality Act, as amended, appearing as Title 14,
Division 6, Chapter 3 of the California Code of
Regulations (hereinafter referred to collectively
as CEQA). CEQA provides for the orderly evalu-
ation of projects and preparation of environmen-
tal documents, and requires adoption of corre-
sponding objectives, criteria and procedures by
local agencies.

(b) Any amendments to CEQA adopted sub-
sequent to the effective date of this Chapter 31
shall not invalidate any provision of this Chapter
31. Any amendments to CEQA that may be
inconsistent with this Chapter 31 shall govern
until such time as this Chapter 31 may be
amended to remove such inconsistency.

(c) This Chapter shall govern in relation to
all other ordinances of the City of San Francisco
("City") and rules and regulations pursuant
thereto. In the event of any inconsistency con-

cerning either public or private actions, the pro-
visions of this Chapter shall prevail. (Added by
Ord. 40-01, File No. 001007, App. 3/16/2001)
(Former Sec. 31.01; amended by Ord. 92-77, App.
3/18/77; repealed by Ord. 40-01)

SEC. 31.02. POLICIES AND
OBJECTIVB]S.

The basic purposes of CEQA and this Chap-
ter 31 are to:

(a) Provide decision makers and the public
with meanin^^ul information regarding the en-
vironmental consequences of proposed activities.

(b) Identify ways that environmental dam-
age can be avoided or significantly reduced.

(d) Bring environmental considerations to
bear at an early stage of the planning process,
and to avoid unnecessary delays or undue com-
plexity of review. Simplicity and directness are to
be emphasized, with the type of review related to
the depth and variety of environmental issues
raised by a project, so that government and
public concern may be focused upon environmen-
tal effects of true significance.

(e) Provide procedural direction on imple-
mentation of CEQA by the City.

(f) Prevent significant avoidable damage to
the environment by requiring changes in projects
through the use of alternatives or mitigation
measures when the government agency finds the
changes to be feasible.

(g) Disclose to the public the reasons why a
governmental agency approved the project in the
manner the agency chose if significant environ-
mental effects are involved (Added by Ord. 40-
01, File No. 001007, App. 3/16/2001) (Former
Sec. 31.02; amended by Ord. 92-77, App. 3/18/77;
repealed by Ord. 40-01)

3427

Supp. No. 10, July/August 2007

Sec. 31.03.

San Francisco - Administrative Code

3428

SEC. 31.03. SCOPE OF REQUIREMENTS.

(a) This Chapter adapts CEQA for use by
the City. The emphasis of this Chapter is upon
implementing procedures, which are expressly
left for determination by local agencies, consis-
tent with CEQA.

(b) The provisions of CEQA are not re-
peated here, but are expressly incorporated herein
by reference as though fully set forth. This
Chapter is supplementary to CEQA. (Added by
Ord. 40-01, File No. 001007, App. 3/16/2001)
(Former Sec. 31.03; added by Ord. 134-73, App.
4/11/73; repealed by Ord. 40-01)

SEC. 31.04. RESPONSIBILITY.

(a) The City and all its officials, boards,
commissions, departments, bureaus and offices
shall constitute a single "local agency," "public
agency" or "lead agency" as those terms are used
in CEQA; except that the San Francisco Rede-
velopment Agency shall be a separate "local
agency" or "public agency" as specified in CEQA.
With regard to establishment of any redevelop-
ment area, the City shall be the "lead agency."

(b) The administrative actions required by
CEQA with respect to the preparation of envi-
ronmental documents, giving of notice and other
activities, as specified in this Chapter, shall be
performed by the San Francisco Planning De-
partment as provided herein, acting for the City.

(c) Where adoption of administrative regu-
lations by resolution of the Planning Commis-
sion after public hearing is specified herein,
there shall be notice by publication in a newspa-
per of general circulation in the City at least
twenty (20) days prior to the hearing and by
posting in the offices of the Planning Depart-
ment, with copies of the proposed regulations
sent to the Board of Supervisors and any other
affected boards, commissions and departments
of the City and to all organizations and individu-
als who have previously requested such notice in
writing. The decision of the Commission in adopt-
ing administrative regulations shall be final.

(d) The City shall be responsible for conduct-
ing environmental review for projects under-
taken by the City within the City's territorial

limits and for projects undertaken by the City
outside the territorial limits of the City. (Added
by Ord. 40-01, File No. 001007, App. 3/16/2001;
amended by Ord. 186-02, File No. 021418, App.
9/6/2002; Ord. 218-02, File No. 021609, App.
11/1/2002; Amended by Ord. 168-07, File No.
061537, App. 7/20/2007) (Former Sec. 31.04;
amended by Ord. 166-74, App. 4/11/74; repealed
by Ord. 40-01)

SEC. 31.05. OFFICE OF
ENVIRONMENTAL REVIEW.

(a) An Office of Environmental Review is
hereby created in the Planning Department,
which shall be responsible, acting through the
Director of Planning, for the administration of
this Chapter 31.

(b) Said office shall be under the direction
of an Environmental Review Officer, who shall
supervise the staff members of the office and
have charge of the collection of fees by the office.
The Environmental Review Officer shall report
to, and coordinate and consult with, the Director
of Planning.

(c) In addition to the powers and duties
conferred below, the Environmental Review Of-
ficer may, upon delegation by the Planning Com-
mission as to specific projects, take testimony at
supplemental public hearings on draft environ-
mental impact reports, in addition to, and not in
lieu of, the hearing held by the Planning Com-
mission as set forth in section 31.14 of this
Chapter, and shall report to, and make all such
testimony available to, the Planning Commis-
sion at a public hearing.

(d) The Environmental Review Officer shall
also take such measures, within his or her pow-
ers, as may be necessary to assure compliance
with this Chapter 31 by persons outside the
Planning Department, and shall periodically re-
view the effectiveness and workability of the
provisions of this Chapter 31 and recommend
any refinements or changes that he or she may
deem appropriate for improvement of such pro-
visions.

Supp. No. 10, July/August 2007

3429

California Environmental Quality Act
Procedures and Fees - General Provisions

Sec. 31.05.

(e) All projects that are not excluded or
categorically exempt from CEQA shall be re-
ferred to the Environmental Review Officer. All
other officials, boards, commissions, depart-
ments, bureaus and offices of the City shall
cooperate with the Environmental Review Of-
ficer in the exercise of his/her responsibilities,
and shall supply necessary information, consul-
tations and comments.

(f) The Environmental Review Officer shall
be responsible for assuring that the City is
carrying out its responsibilities set forth in CEQA.
In addition, when the City is to carry out or
approve a project and some other public agency
is the "lead agency," as defined by CEQA, and
where projects are to be carried out or approved
by the State and Federal governments, the En-
vironmental Review Officer shall provide consul-
tation and comments for the City to the other
government agencies when appropriate.

(g) To the extent feasible, the Environmen-
tal Review Officer shall combine the evaluation
of projects, preparation of environmental impact
reports and conduct of hearings with other plan-
ning processes; and shall coordinate environmen-
tal review with the Capital Improvement Pro-
gram, the San Francisco General Plan and the
San Francisco Planning Code.

(h) Adoption and/or revision of administra-
tive regulations to implement CEQA shall be by
resolution of the Planning Commission after a
public hearing. The Environmental Review Of-
ficer may adopt necessary forms, checklists and
processing guidelines to implement CEQA and
this Chapter 31 without a public hearing.

(i) Upon prior authorization by the Plan-
ning Commission, the Environmental Review
Officer may attend hearings and testify on mat-
ters related to CEQA before governmental orga-
nizations and agencies other than governmental
agencies of the City and County of San Francisco
and may advocate on behalf of the City on
matters related to CEQA.

(j) The Environmental Review Officer may
provide information to other governmental or
environmental organizations and members of
the public.

(k) The Environmental Review Oflficer may
delegate his or her responsibilities to an em-
ployee of the Office of Environmental Review. All
references herein to the Environmental Review
Officer shall be deemed to include the Environ-
mental Review Officer's delegate. (Added by Ord.
40-01, File No. 001007, App. 3/16/2001) (Former
Sec. 31.05; amended by Ord. 166-74, App. 4/11/
74)

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Supp. No. 10, July/August 2007

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Supp. No. 10, July/August 2007

ARTICLE II: PROJECTS COVERED

Sec. 31.06. Coverage of State Law.
Sec. 31.07. Listing of Non-Physical and

Ministerial Projects.
Sec. 31.08. Categorical Exemptions.
Editor's Note:

SEC. 31.06. COVERAGE OF STATE LAW.

CEQA provides that certain kinds of projects
may be subject to CEQA. Some of these projects
may be excluded or categorically exempt from
CEQA. If not excluded or categorically exempt,
CEQA provides a process whereby an initial
study is completed, then a determination is made
as to whether a negative declaration or an envi-
ronmental impact report ("EIR") should be pre-
pared. In accordance with the requirements of
CEQA and as specified herein, the Planning
Commission and/or the Environmental Review
Officer shall determine when CEQA applies to a
project, when the project is excluded or exempt,
or when a negative declaration or environmental
impact report is required. (Added by Ord. 40-01,
File No. 001007, App. 3/16/2001)

SEC. 31.07. LISTING OF NON-PHYSICAL
AND MINISTERIAL PROJECTS.

(a) The Environmental Review Officer shall
maintain a listing of types of nonphysical and
ministerial projects excluded from CEQA. Such
listing shall be modified over time as the status
of types of projects may change under applicable
laws, ordinances, rules and regulations. The
listing shall not be considered totally inclusive,
and may at times require refinement or interpre-

tation on a case-by-case basis. When the Envi-
ronmental Review Officer proposes to modify
such listing, notice shall be provided on the
Planning Commission agenda prior to such modi-
fication. Any person who may consider amy modi-
fication to be incorrect may appeal such modifi-
cation to the Planning Commission within twenty
(20) days of the date of the Planning Commission
agenda on which notice of such modification was
posted. The Planning Commission may affirm,
modify or disapprove such modification, and the
decision of the Planning Commission shall be
final.

(b) Such listing of excluded projects and
modifications thereto shall be kept posted in the
offices of the Planning Department, and copies
thereof shall be sent to the Board of Supervisors
and all other affected boards, commissions and
departments of the City. (Added by Ord. 40-01,
File No. 001007, App. 3/16/2001)

SEC. 31.08. CATEGORICAL
EXEMPTIONS.

(a) CEQA provides that certain classes of
projects generally do not have a significant effect
on the environment and therefore are categori-
cally exempt from CEQA. Each public agency
must list the specific activities that fall within
each such class, subject to the qualification that
these lists must be consistent with both the
letter and the intent of the classes set forth in
CEQA. Except as provided in this section 31.08,
projects that are categorically exempt are not
subject to the requirements of this Chapter 31.

(b) The Environmental Review Oflicer shall
maintain the required list of types of projects
which are categorically exempt, and such list
shall be kept posted in the offices of the Planning
Department. Such list shall be kept up to date in
accordance with any changes in CEQA and any
changes in the status of local projects. The initial
list and any additions, deletions and modifica-
tions thereto shall be adopted as administrative

3439

Sec. 31.08.

San Francisco - Administrative Code

3440

regulations by resolution of the Planning Com-
mission after public hearing, according to the
procedure set forth in Section 31.04(c) of this
Chapter.

(c) CEQA provides for public agencies to
request additions, deletions and modifications to
the classes of projects listed as categorically
exempt in CEQA. The Planning Commission
shall make any such requests, after a public
hearing thereon held according to the procedure
specified in Section 31.04(c) of this Chapter for
adoption of administrative regulations.

(d) The Environmental Review Officer may
adopt necessary forms, checklists and processing
guidelines to aid the Planning Department and
other departments in determining that a project
may be categorically exempt in accordance with
the letter and the intent expressed in the classes
of categorical exemptions specified in CEQA and
with the administrative regulations adopted by
the Planning Commission.

(e) The Environmental Review Officer shall
advise other departments of the categorical ex-
emptions. The Environmental Review Officer
may delegate the determination whether a project
is categorically exempt from CEQA to other
departments, provided that other departments
shall consult with the Environmental Review
Officer regarding the application of the categori-
cal exemptions, and provided further that the
Environmental Review Officer shall be respon-
sible for all determinations so delegated to other
departments.

(f) When the Environmental Review Of-
ficer, or any other department to which the
Environmental Review Officer has delegated re-
sponsibility pursuant to Section 31.08(e) above,
has determined that a project is excluded or
categorically exempt from CEQA, notice to the
public shall be provided for all such determina-
tions involving the following types of projects: (1)
any historical resources as defined in CEQA,
including without limitation, any buildings and
sites listed individually or located within dis-
tricts listed (i) in Planning Code Articles 10 or 11,
(ii) in City-recognized historical surveys, (iii) on
the California Register, or (iv) on the National

Register of Historic Places; (2) any Class 31
categorical exemption; (3) any demolition of an
existing structure; or, (4) any Class 32 categori-
cal exemption. Written determinations of cat-
egorical exemptions for these types of projects
shall be posted in the offices of the Planning
Department and shall be mailed to any individu-
als or organizations that have previously re-
quested such notice in writing.

(g) When the Environmental Review Of-
ficer, or any other department to which the
Environmental Review Officer has delegated re-
sponsibility pursuant to Section 31.08(e) above,
has determined that a project is excluded or
categorically exempt from CEQA, the Environ-
mental Review Officer may issue a Certificate of
Exemption from Environmental Review by post-
ing a copy thereof in the offices of the Planning
Department, and by mailing copies thereof to the
applicant, the board(s), commission(s) or depart-
ments) that will carry out or approve the project,
and to any individuals or organizations who
have previously requested such notice in writing.

(h) The Planning Commission may take tes-
timony on any categorical exemption at the pub-
lic hearing, if any, in connection with the Plan-
ning Commission's consideration of the project
that is the subject of the categorical exemption.
(Added by Ord. 40-01, File No. 001007, App.
3/16/2001)

[The next page is 3449]

ARTICLE III: EVAI.UATIONS

Sec. 31.09. Determination of Need for

Evaluation.
Sec. 31.10. Initial Evaluation of Projects.
Sec. 31.11. Negative Declarations or

Mitigated Negative

Declarations.
Sec. 31.12. Determinations that

Environmental Impact Reports

are Required.
Sec. 31.13. Draft Environmental Impact

Reports.
Sec. 31.14. Consultations and Comments.
Sec. 31.15. Final Environmental Impact

Reports.

Sec. 31.16. Appeal of Final Environmental

Impact Reports.
Sec. 31.17. Actions on Projects.
Sec. 31.18. Additional Environmental

Review.
Sec. 31.19. Evaluation of Modified Projects.
Sec. 31.20. Multiple Actions on Projects.
Editor's Note:

SEC. 31.09. DETERMINATION OF NEED
FOR EVALUATION.

All projects that are not statutorily excluded
or categorically exempt from CEQA shall be
referred to the Environmental Review Officer,
prior to the decision as to whether to carry out or
approve the project, for an initial study to estab-
lish whether a negative declaration or an envi-
ronmental impact report is required. (Added by
Ord. 40-01, File No. 001007, App. 3/16/2001)

SEC. 31.10. INITIAL EVALUATION OF
PROJECTS.

(a) Upon receiving an environmental evalu-
ation application for a project, or upon referral of
a project by the board, commission or depart-
ment that is to carry^ out or approve the project,
the Environmental Review Officer shall deter-
mine whether such project is exempt from envi-
ronmental review. If not exempt, the Environ-
mental Review Officer shall complete an initial
study to determine the level of environmental
analysis required. In the event it is clear at the
outset that an environmental impact report is
required, the Environmental Review Officer may,
with the consent of the applicant, make an
immediate determination and dispense with the
initial study. Each environmental evaluation ap-
plication or referral shall include a project de-
scription using as its base the environmental
information form set forth as Appendix H of the
CEQA Guidelines, which form shall be supple-
mented to require additional data and informa-
tion applicable to a project's effects, including
consistency with the environmental issues in-
cluded in the Eight Priority Policies set forth in
Section 101.1 of the Planning Code and incorpo-
rated into the General Plan, shadow impacts,
including the analysis set forth in Planning Code
Section 295, and such other data and informa-
tion specific to the urban environment of San
Francisco or to the specific project. Each environ-
mental evaluation application or referral shall
be certified as true and correct by the applicant
or referring board, commission or department.
Each initial study shall include an identification
of the environmental effects of a project using as
its base the environmental checklist form set
forth in Appendix G of the CEQA Guidelines and
addressing each of the questions from the check-
list form that are relevant to a project's environ-
mental effects; provided that the checklist form
shall be supplemented to address additional en-
vironmental effects, including consistency with

3449

Supp. No. 1, September 2006

Sec. 31.10.

San Francisco - Administrative Code

3450

the environmental issues included in the Eight
Priority Policies set forth in Section 101.1 of the
Planning Code and incorporated into the Gen-
eral Plan, shadow impacts, including the analy-
sis set forth in Planning Code Section 295, and
such other environmental effects specific to the
urban environment of San Francisco or to the
specific project.

(b) The initial study shall provide data and
analysis regarding the potential for the project to
have a significant effect on the environment. The
basic criteria for determination of significant
effect shall be consistent with the provisions set
forth in CEQA.

(c) The applicant or the board, commission
or department that is to carry out or approve the
project shall submit to the Environmental Re-
view Officer such data and information as may
be necessary for the initial study. If such data
and information are not submitted, the Environ-
mental Review Officer may suspend work on the
initial evaluation.

(d) During preparation of the initial study,
the Environmental Review Officer may consult
with any person having knowledge or interest
concerning the project. In cases in which the
project is to be carried out or approved by more
than one government agency and the City is the
lead agency, the Environmental Review Officer
shall solicit input from all other government
agencies that are to carry out or approve the
project.

(e) If a project is subject to CEQA and the
National Environmental Policy Act, an initial
evaluation prepared pursuant to the National
Environmental Policy Act may be used to satisfy
the requirements of this Section.

(f) Based on the analysis and conclusions in
the initial study, the Environmental Review Of-
ficer shall determine, based on the requirements
of CEQA, whether there is a "fair argument" that
the project could have a significant effect on the
environment, and whether a negative declara-
tion or environmental impact report shall be
prepared.

(f) Based on the analysis and conclusions in
the initial study, the Environmental Review Of-
ficer shall determine, based on the requirements
of CEQA, whether the project could have a
significant effect on the environment, and whether
a negative declaration or environmental impact
report shall be prepared. (Added by Ord. 40-01,
File No. 001007, App. 3/16/2001; Ord. 116-06,
File No. 060224, App. 6/1/2006)

SEC. 31.11. NEGATIVE DECLARATIONS
OR MITIGATED NEGATIVE
DECLARATIONS.

(a) When any negative declaration is re-
quired, it shall be prepared by or at the direction
of the Environmental Review Officer. The nega-
tive declaration shall describe the project pro-
posed, include the location of the property, pref-
erably shown on a map, and the name of the
project proponent, state the proposed finding
that the project could not have a significant
effect on the environment, and have attached to
it a copy of the initial study documenting reasons
to support that finding. The negative declaration
shall also indicate mitigation measures, if any,
included in the project to avoid potentially sig-
nificant effects.

(b) The Environmental Review Officer shall
first prepare a negative declaration on a prelimi-
nary basis, and shall post a copy of the proposed
negative declaration in the offices of the Plan-
ning Department and mail notice thereof to the
applicant and the board(s), commission(s) or
department(s) that will carry out or approve the
project.

(c) The Environmental Review Officer shall
provide a notice of intent to adopt a negative
declaration or mitigated negative declaration by
publication in a newspaper of general circulation
in the City, by posting in the offices of the
Planning Department and on the subject site, by
mail to the owners of all real property within the
area that is the subject of the negative declara-
tion and within 300 feet of all exterior bound-
aries of such area, and by mail to all organiza-
tions and individuals who have previously
requested such notice in writing, sufficiently
prior to adoption of the negative declaration to

Supp. No. 1, September 2006

3450.1 California Environmental Quality Act Sec. 31.11.

Procedures and Fees - Evaluations

allow the public and agencies a review period of
not less than twenty (20) days, or thirty (30) days
if required by CEQA.

(d) The notice of intent shall specify the
period during which comments are to be re-
ceived, the date, time and place of any public
hearings on the project, a brief description of the
project and its location, and the address where
copies of the negative declaration and all docu-
ments referenced in the negative declaration are
available for review.

(e) Within twenty (20) days, or thirty (30)
days if required by CEQA, following the publica-
tion of such notice, any person may appeal the
proposed negative declaration to the Planning
Commission, specifying the grounds for such
appeal. Any person may submit comments on the
proposed negative declaration.

(f) The Planning Commission shall hold a
public hearing on any such appeal within not
less than fourteen (14) nor more than thirty (30)
days after the close of the appeal period. Notice
of such hearing shall be posted in the offices of
the Planning Department, and shall be mailed to
the appellant, to the applicant, to the board(s),
commission(s) or department(s) that will carry
out or approve the project, to any individual or
organization that has submitted comments on
the proposed negative declaration, and to any
other individual or organization that has re-
quested such notice in writing.

(g) After such hearing the Planning Com-
mission shall affirm the proposed negative dec-
laration if it finds that the project could not have
a significant effect on the environment, may
refer the proposed negative declaration back to
the Planning Department for revisions, or shall
overrule the proposed negative declaration and

Supp. No. 1, September 2006

[INTENTIONALLY LEFT BLANK]

Supp. No. 1, September 2006

3451

California Environmental Quality Act
Procedures and Fees - Evaluations

Sec. 31.13.

order preparation of an environmental impact
report if it finds that the project may have a
significant effect on the environment.

(h) If the proposed negative declaration is
not appealed as provided herein, or if it is af-
firmed on appeal, the negative declaration shall
be considered final, subject to any necessary
modifications. Thereafter, the first City decision-
making body to act on approval of the project
shall review and consider the information con-
tained in the final negative declaration, together
with any comments received during the public
review process, and, upon making the findings
as provided in CEQA, shall adopt the negative
declaration, prior to approving the project. All
decision-making bodies shall review and con-
sider the negative declaration and make findings
as required by CEQA prior to approving the
project.

(i) If the City adopts a mitigated negative
declaration, the decision-making body shall also
adopt a program for reporting on or monitoring
the mitigation measures for the project that it
has either required or made a condition of ap-
proval to mitigate or avoid significant environ-
mental effects.

(j) After the City has decided to carry out or
approve the project, the Environmental Review
Officer may file a notice of determination with
the county clerk in the county or counties in
which the project is to be located. If required by
CEQA, the notice of determination shall also be
filed with the California Office of Planning and
Research. (Added by Ord. 40-01, File No. 001007,
App. 3/16/2001) (Former Sec. 31.11; amended by
Ord. 92-77, App. 3/18/77; repealed by Ord. 40-01)

SEC. 31.12. DETERMINATIONS THAT
ENVIRONMENTAL IMPACT REPORTS
ARE REQUIRED.

If it is determined that a project may have a
significant effect on the environment and that an
environmental impact report is required, the
Environmental Review Officer shall publish the
notice of preparation in a newspaper of general
circulation in the City, shall post the notice of
preparation in the offices of the Planning Depart-

ment, and shall mail the notice of preparation to
the applicant, the board(s), cominission(s) or
department(s) that will carry out or approve the
project and to all organizations and individuals
who have previously requested such notice in
writing. The Environmental Review Officer shall
provide such other notice as required by CEQA.
(Added by Ord. 40-01, File No. 001007, App.
3/16/2001) (Former Sec. 31.12; amended by Ord.
166-74, App. 4/11/74; repealed by Ord. 40-01)

SEC. 31.13. DRAFT ENVIRONMENTAL
IMPACT REPORTS.

(a) When an environmental impact report
("EIR") is required, it shall be prepared by or at
the direction of the Environmental Review Of-
ficer. The EIR shall first be prepared as a draft
report.

(b) The applicant or the board, commission
or department that is to carry out or approve the
project shall submit to the Environmental Re-
view Officer such data and information as may
be necessary to prepare the draft EIFL If such
data and information are not submitted, the
Environmental Review Officer may suspend work
on the draft EIR. The data and infbrmation
submitted shall, if the Environmental Review
Officer so requests, be in the form of all or a
designated part or parts of the proposed draft
EIR itself, although the Environmental Review
Officer shall in any event make his or her own
evaluation and analysis and exercise his or her
independent judgment in preparation of the draft
EIR for public review.

(c) During preparation of the draft EIR, the
Environmental Review Officer may consult with
any person having knowledge or interest concern-
ing the project. If he/she has not already done so
in accordance with Section 31.10 above, in cases
in which the project is to be carried out or
approved by more than one public agency, the
Environmental Review Officer shall consult with
all other public agencies that are to carry out or
approve the project.

(d) When the draft EIR has been prepared,
the Environmental Review Officer shall file a
notice of completion of such draft as required by

Sec. 31.13.

San Francisco - Administrative Code

3452

CEQA. A copy of such notice, or a separate notice
containing the same information, shall there-
upon be posted in the offices of the Planning
Department and on the subject site, and mailed
to the applicant, the board(s), commission(s) or
department(s) that will carry out or approve the
project, and to any individual or organization
that has requested such notice in writing. The
notice of completion shall be sent by mail to the
owners of all real property within the area that is
the subject of the environmental impact report
and within 300 feet of all exterior boundaries of
such area. A copy of the draft EIR shall be
provided to the applicant and to such board(s),
commission(s) or department(s) and to any indi-
vidual or organization that has so requested.
(Added by Ord. 40-01, File No. 001007, App.
3/16/2001) (Former Sec. 31.13; added by Ord.
134-73, App. 4/11/73; repealed by Ord. 40-01)

SEC. 31.14. CONSULTATIONS AND
COMMENTS.

(a) Notice shall be sent to public agencies
with jurisdiction by law, and persons with spe-
cial expertise as follows: after filing a notice of
completion as required by CEQA, the Environ-
mental Review Officer shall send a copy of the
draft EIR to any public agencies as required by
CEQA, and may send copies to and consult with
persons who have special expertise with respect
to any environmental impact involved.

(b) In sending such copies, the Environmen-
tal Review Officer shall request comments on the
draft EIR from such agencies and persons, with
particular focus upon the sufficiency of the draft
EIR in discussing possible effects on the environ-
ment, ways in which adverse effects may be
minimized, and alternatives to the project.

(c) Each notice and request for comments
shall state that any comments must be returned
within a certain time after the sending of the
draft EIR, and if comments are not returned
within that time it shall be assumed that the
agency or person has no comment to make. The
time limit shall normally be thirty (30) days, or
forty-five (45) days if required by CEQA. The
Environmental Review Officer may allow a longer
period for comments on projects of exceptional

size or complexity. The Planning Commission or
the Environmental Review Officer may, upon the
request of an agency or person from whom com-
ments are sought, grant an extension of time
beyond the original period for comments, but
such extension shall not interfere with the hold-
ing of any hearing on the draft EIR for which
notice has already been given.

(d) Notice to the general public shall be
provided as follows:

(1) Public participation, both formal and
informal, shall be encouraged at all stages of
review, and written comments shall be accepted
at any time up to the conclusion of the public
comment period. The Environmental Review Of-
ficer may give public notice at any formal stage
of the review process, beyond the notices re-
quired by this Chapter 31, in any manner it may
deem appropriate, and may maintain a public
log as the status of all projects under formal
review. Members of the general public shall be
encouraged to submit their comments in writing
as early as possible.

(2) The draft EIR shall be available to the
general public upon filing of the notice of comple-
tion.

(3) The Planning Commission shall hold a
public hearing on every draft EIR, with such
hearing combined as much as possible with other
activities of the Planning Commission. The En-
vironmental Review Officer may, upon delega-
tion by the Planning Commission, take testi-
mony at supplemental public hearing(s) on draft
EIRs, in addition to, and not in lieu of, the
hearing conducted by the Planning Commission,
and shall report to and make all testimony
received by the Environmental Review Officer
available to the Planning Commission at a public
hearing. Notice of the Planning Commission hear-
ings and all hearings at which the Environmen-
tal Review Officer takes testimony shall be given
by publication in a newspaper of general circu-
lation in the City at least 30 days prior to the
hearing, by posting in the offices of the Planning
Department, by posting on or near the site
proposed for the project; and by mail sent not
less than 30 days prior to the hearing to the

3453

California Environmental Quality Act
Procedures and Fees - Evaluations

Sec. 31.16.

applicant, to the board, commission or depart-
ment that is to carry out or approve the project,
and to any other individual or organization re-
questing such notice.

(4) The draft EIR, including any revisions
made prior to or during the public hearing, shall
be the basis for discussion at the hearing. To the
extent feasible, any comments already received
from any agency, organization or individual shall
be available at the public hearing. (Added by
Ord. 40-01, File No. 001007, App. 3/16/2001)
(Former Sec. 31.14; added by Ord. 134-73, App.
4/11/73; repealed by Ord. 40-01)

SEC. 31.15. FINAL ENVIRONMENTAL
IMPACT REPORTS.

(a) A final EIR shall be prepared by, or at
the direction of, the Environmental Review Of-
ficer, based upon the draft EIR, the consultations
and comments received during the review pro-
cess, and additional information that may be-
come available.

(b) The final EIR shall include a hst of
agencies and persons consulted, the comments
received, either verbatim or in summary, and a
response to any comments that raise significant
points concerning effects on the environment.
The response to comments may take the form of
revisions within the draft EIR, or by adding a
separate section in the final EIR, or by providing
an explanation in response to the comment.

(c) A public record shall be kept of each case
in which an EIR is prepared, including all com-
ments received in writing in addition to a record
of the public hearing. The final EIR shall indi-
cate the location of such record. Any transcrip-
tion of a hearing record shall be at the expense of
the person requesting such transcription.

(d) When the final EIR has been prepared
and in the judgment of the Planning Commission
it is adequate, accurate and objective, reflecting
the independent judgment and analysis of the
Planning Commission, the Planning Commis-
sion shall certify its completion in compliance
with CEQA. The certification of completion shall
contain a finding as to whether the project as

proposed will, or will not, have a significant
effect on the environment. (Added by Ord. 40-01,
File No. 001007, App. 3/16/2001) (Former Sec.
31.15; added by Ord. 134-73, App. 4/11/73; re-
pealed by Ord. 40-01)

SEC. 31.16. APPEAL OF FINAL
ENVIRONMENTAL IMPACT REPORTS.

(a) Any person or entity that has submitted
comments to the Planning Commission or the
Environmental Review Officer on a draft EIR,
either in writing during the public review period,
or orally or in writing at a public hearing on the
EIR, may appeal the Planning Commission's
certification of a final EIR to the Board of Super-
visors (the "Board").

(1) A letter of appeal shall be submitted to
the Clerk of the Board within twenty (20) calen-
dar days after the Planning Commission's certi-
fication of the EIR, stating the specific grounds
for appeal, and accompanied by a fee, as set forth
in Section 31.22 herein, payable to the Clerk of
the Board. The grounds for appeal shall be
limited to issues related to the adequacy, accu-
racy and objectiveness of the final EIR, including
but not limited to the sufficiency of the final EIR
as an informational document and the correct-
ness of its conclusions, and the correctness of the
findings contained in. the Planning Commission's
certification of the EIR. The appellant shall
submit a copy of the letter of appeal to the
Environmental Review Officer at the time appel-
lant submits a letter of appeal to the Clerk of the
Board.

(2) After receipt of the letter of appeal, the
Environmental Review Officer shall promptly
transmit copies of the EIR to the Clerk of the
Board and make the administrative record avail-
able to the Board.

(3) While the appeal is pending, and until
the EIR is affirmed or re-certified as may be
required by the Board, the City shall not carry
out or consider the approval of a project that is
the subject of the EIR on appeal.

(b) The Clerk of the Board shall promptly
schedule a hearing on the appeal before the full
Board, without regard to any rule or policy of the

Sec. 31.16.

San Francisco - Administrative Code

3454

Board requiring a 30-day review period. If more
than one person submits a letter of appeal on a
final EIR, the Board shall consolidate such ap-
peals so that they are heard simultaneously. The
Board may consolidate or coordinate its hearing
on the appeal with other hearings on the project.
Notice of the appeal shall be provided by mail to
the appellants and to all organizations and indi-
viduals who have previously requested such no-
tice, not less than ten (10) days prior to the date
of the hearing.

(c) The Board shall conduct its own inde-
pendent review of the final EIR. The Board shall
consider anew all facts, evidence and/or issues
related to the adequacy, accuracy and objective-
ness of the final EIR, including but not limited to
the sufficiency of the final EIR as an informa-
tional document and the correctness of its con-
clusions, and the Planning Commission's certifi-
cation of the EIR. The Board may consider new
facts, evidence and/or issues that were not intro-
duced before the Planning Commission or the
Environmental Review Officer.

(d) The Board shall affirm the Planning
Commission's certification of the final EIR only if
the Board finds that the final EIR is adequate,
accurate and objective, that its conclusions are
correct, and that the findings contained in the
Planning Commission's certification are correct.
The Board may affirm or reverse the action of
the Planning Commission only by a vote of a
majority of all members of the Board. If the
Board reverses the Planning Commission's cer-
tification of the final EIR, it shall make specific
findings and remand the final EIR to the Plan-
ning Commission for further action consistent
with the Board's findings. The Board shall act by
motion in affirming or reversing the Planning
Commission's certification of the final EIR.

(e) The Board shall act on an appeal within
thirty (30) days of appeal of the Planning
Commission's certification of the EIR, provided
that, if the full membership of the Board is not
present on the last day on which said appeal is
set or continued for hearing within such 30 days,
the Board may postpone said hearing and deci-
sion thereon until, but not later than, the full

membership of the Board is present; provided
further, that the latest date to which said hear-
ing and decision may be so postponed shall be
not more than ninety (90) days from the date of
filing the appeal. The date of certification of the
final EIR shall be the date upon which the
Planning Commission originally certified the fi-
nal EIR if: (i) no appeal is filed; or (ii) an appeal
is filed and the Planning Commission's certifica-
tion of the final EIR is affirmed by action of the
Board.

(f) In the event the Board remands an EIR
to the Planning Commission, the Planning Com-
mission shall take such action as may be re-
quired by the specific findings made by the
Board and consider re-certification of the EIR. In
the event the EIR is re-certified by the Planning
Commission, only the portions of the EIR which
have been revised, or the new issues which have
been addressed, by the Planning Commission
may be appealed again to the Board pursuant to
the procedures set forth herein.

(g) The Board may reject an appeal if it
finds that the appeal fails to state proper grounds
for appeal. The Board shall act by motion in
rejecting an appeal. (Added by Ord. 40-01, File
No. 001007, App. 3/16/2001) (Former Sec. 31.16;
amended by Ord. 166-74, App. 4/11/74; repealed
by Ord. 40-01)

SEC. 31.17. ACTIONS ON PROJECTS.

(a) The certification of completion and the
final EIR shall be transmitted by the Environ-
mental Review Officer to the applicant and the
board, commission or department that is to carry
out or approve the project, and shall be pre-
sented to the body which will decide whether to
carry out or approve the project. These docu-
ments shall also be presented to any appellate
body in the event of an appeal from the decision
whether to carry out or approve the project.

(b) Before making its decision whether to
carry out or approve the project, the decision-
making body or appellate body shall review and
consider the information contained in the EIR
and shall make findings as required by CEQA.

3455

California Environmental Quality Act
Procedures and Fees - Evaluations

Sec. 31.20.

(c) Thereafter, the decision-making body or
appellate body may make its decision whether to
carry out or approve the project.

(d) After the City has decided to carry out or
approve the project, the Environmental Review
Officer may file a notice of determination with
the county clerk of the county or counties in
which the project is to be located and as required
by CEQA. Such notice shall contain the informa-
tion required by CEQA. (Added by Ord. 40-01,
File No. 001007, App. 3/16/2001) (Former Sec.
31.17; added by Ord. 134-73, App. 4/11/73; re-
pealed by Ord. 40-01)

SEC. 31.18. ADDITIONAL
ENVIRONMENTAL REVIEW.

If the Environmental Review Officer or a
decision-making body, as defined in CEQA, de-
termine that additional environmental review is
required by CEQA, or if modifications to a project
require additional environmental review, such
review will be conducted as provided by CEQA
and in accordance with the applicable proce-
dures set forth in this Chapter 31. (Added by
Ord. 40-01, File No. 001007, App. 3/16/2001)

SEC. 31.19. EVALUATION OF MODIFIED
PROJECTS.

(a) After evaluation of a proposed project
has been completed pursuant to this Chapter, a
substantial modification of the project may re-
quire reevaluation of the proposed project.

(b) Where such a modification occurs as to a
project that has been determined to be excluded
or categorically exempt pursuant to this Chap-
ter, a new determination shall be made as pro-
vided in this Chapter.

(1) If the project is again determined to be
excluded or categorically exempt, no further evalu-
ation shall be required by this Chapter.

(2) If the project is determined not to be
excluded or categorically exempt, an initial study
shall be conducted as provided in this Chapter.

(c) Where such a modification occurs as to a
project for which a negative declaration has been
adopted or a final EIR has been certified, the

Environmental Review Officer shall reevaluate
the proposed project in relation to such modifi-
cation.

(1) If, on the basis of such reevaluation, the
Environmental Review Officer determines, based
on the requirements of CEQA, that no additional
environmental review is necessary, this determi-
nation and the reasons therefor shall be noted in
writing in the case record, and no further evalu-
ation shall be required by this Chapter. Notice of
any such written determination and the reasons
therefor shall be posted in the Planning Depart-
ment, and shall be mailed to the applicant, the
board, commission or department that will carry
out or approve the project, to any individual or
organization that has commented on the envi-
ronmental document, and to any other indi-
vidual or organization requesting such notice in
writing.

(2) If, on. the basis of such reevaluation, the
Environmental Review Officer determines that
additional environmental review is necessary,
the project shall be considered a new project for
purposes of environmental review pursuant to
this Chapter. In that event, a new evaluation
shall be completed prior to the decision by the
City as to whether to carry out or approve the
project as modified. CEQA sets forth specific
requirements for the determination of whether a
supplemental or subsequent EIR is necessary, as
well as the process therefor. (Added by Ord.
40-01, File No. 001007, App. 3/16/2001)

SEC. 31.20. MULTIPLE ACTIONS ON
PROJECTS,

(a) The concept of a project is broadly de-
fined by CEQA so that multiple actions of the
same or of different kinds may often constitute a
single project. This concept of a project permits
all the ramifications of a public action to be
considered together, and avoids duplication of
review.

(b) Early and timely evaluation of projects
and preparation of E]IRs shall be emphasized.

Sec. 31.20. San Francisco - Administrative Code 3456

(d) For purposes of determining the appro-
priate time for evaluation of projects and prepa-
ration of EIRs pursuant to this Chapter, there
shall be only one relevant decision by the City to
carry out or approve, or not to carry out or
approve, a project. However for other purposes
there may be more than one determination by
the same or separate boards, commissions and
departments of the City, either discretionary or
ministerial, affecting the carrying out or ap-
proval of the project. The authority and effective-
ness of any other such determinations, including
determinations by the Board of Appeals or any
other appellate body, shall not be diminished by
an5^hing in this Chapter.

(e) Only one evaluation of a project or prepa-
ration of an EIR shall occur in cases in which
both the City and one or more other public
agencies are to carry out or approve a project. In
such cases the evaluation or preparation is per-
formed by the lead agency, which agency is
selected by reference to criteria in CEQA.

(f) CEQA provides that a single initial study,
negative declaration or EIR may be employed for
more than one project, if all such projects are
essentially the same in terms of environmental
effects. Furthermore, an initial study, negative
declaration or EIR prepared for an earlier project
may be applied to a later project, if the circum-
stances of the projects are essentially the same.

(g) Reference is made in CEQA to simulta-
neous consideration of multiple and phased
projects, related projects, cumulative effects of
projects, projects elsewhere in the region, exist-
ing and planned projects.

(h) With respect to projects preceding CEQA,
and projects for which evaluations and EIRs
have already been completed, or on which sub-
stantial work has been performed, CEQA makes
provision as to when, if at all, a new evaluation
or EIR must be prepared. An effort shall be
made, in preparation of evaluations and EIRs, to
consider alternatives and thus avoid the need for
such further review of the project. (Added by
Ord. 40-01, File No. 001007, App. 3/16/2001)

[The next page is 3471]

ARTICLE IV: FEES

Sec. 31.21. Allocation of Costs.

Sec. 31.22.
Sec. 31.23.

Basic Fees.
Other Fees.

Editor's Note:

SEC. 31.21. ALLOCATION OF COSTS.

(a) The costs of initial evaluations, prepara-
tion of environmental impact reports, notices,
hearings and other aspects of administering this
Chapter 3.1 shall be borne as follows:

(1) For a project to be carried out by the
City: By the board, commission or department
that is to carry out such project, as part of the
budgeted project costs.

(2) For a project to be carried out by any
person other than the City: By such person,

(3) For the taking of an appeal to the Plan-
ning Commission: By the appellant. (Added by
Ord. 40-01, File No. 001007, App. 3/16/2001)
(Former Sec. 31.21; added by Ord. 134-73, App.
4/11/73; repealed by Ord. 40-01)

SEC. 31.22. BASIC FEES.

(a) The following basic fees shall be charged
by the Planning Department, as specified in
Section 31.21 above:

(1) For an initial study of a project exclud-
ing use of special expertise or technical assis-
tance, as described in Section 31.21 below, the
initial fee shall be:

— Where the total estimated construction cost
as defined by the San Francisco Building
Code is between $0 and $9,999: $895;

— Where said total estimated construction cost
is $10,000 or more, but less than $200,000:
$3,720 PLUS 1.725% of the cost over $10,000;

— Where said total estimated construction cost
is $200,000 or more, but less than $1,000,000:
$6,997 PLUS 1.304% of the cost over
$200,000;

— Where said total estimated construction cost
is $1,000,000 or more, but less than
$10,000,000 $17,429 PLUS 1.094% of the
cost over $1,000,000;

— Where said total estimated construction cost
is $10,000,000 or more, but less than
$30,000,000: $115,889 PLUS .337% of the
cost over $10,000,000;

— Where said total estimated construction cost
is $30,000,000 or more, but less than
$50,000,000: $183,289 PLUS .127% of the
cost over $30,000,000;

— Where said total estimated construction cost
is $50,000,000 or more, but less than
$100,000,000: $208,689 PLUS .030% of the
cost over $50,000,000;

— Where said total estimated construction cost
is $100,000,000 or more: $223,689 PLUS
.013% of the cost over $100,000,000.

An applicant proposing significant revisions
to a project for which an application is on file
with the Planning Department shall be charged
time and materials to cover the full costs in
excess of the fee paid.

(2) For preparation of an environmental
impact report excluding use of special expertise
or technical assistance, as described in Section
31.22 below, the initial fee shall be:

3471

Supp. No. 9, June 2007

Sec. 31.22.

San Francisco - Administrative Code

3472

— Where the total estimated construction cost
as defined in the San Francisco Building
Code is between $0 to $199,999: $19,870;

— Where said total estimated construction cost
is $200,000 or more, but less than $1,000,000:
$19,870 PLUS .498% of the cost over
$200,000;

— Where said total estimated construction cost
is $1,000,000 or more, but less than
$10,000,000: $23,961 PLUS .337% of the
cost over $1,000,000;

— Where said total estimated construction cost
is $10,000,000 or more, but less than
$30,000,000: $54,291 PLUS .138% of the
cost over $10,000,000;

— Where said total estimated construction cost
is $30,000,000 or more, but less than
$50,000,000: $81,891 PLUS .038% of the
cost over $30,000,000;

— Where said total construction cost is
$50,000,000 or more, but less than
$100,000,000: $89,491 PLUS .038% of the
cost over $50,000,000;

— Where said total estimated construction cost
is $100,000,000 or more: $108,491 PLUS
.013% of the cost over $100,000,000.

(3) For an appeal to the Planning Commis-
sion: The fee shall be $400 to the appellant;
provided, however, that the fee shall be waived if
the appeal is filed by a neighborhood organiza-
tion that: (a) has been in existence for 24 months
prior to the appeal filing date, (b) is on the
Planning Department's neighborhood organiza-
tion notification list, and (c) can demonstrate to
the Planning Director or his/her designee that
the organization is affected by the proposed
project. An exemption from paying this appeal
fee may be granted when the requestor's income
is not enough to pay for the fee without affecting
their abilities to pay for the necessities of life.

provided that the person seeking the exemption
demonstrates to the Planning Director or his/her
designee that they are substantially affected by
the proposed project.

(4) For an appeal to the Board of Supervi-
sors of environmental determinations, including
the certification of an EIR, a negative declara-
tion, or determination of a categorical exemp-
tion, the fee shall be $400 to the appellant;
provided, however, that the fee shall be waived if
the appeal is filed by a neighborhood organiza-
tion that: (a) has been in existence for 24 months
prior to the appeal filing date, (b) is on the
Planning Department's neighborhood organiza-
tion notification list, and (c) can demonstrate to
the Planning Director or his/her designee that
the organization is affected by the proposed
project. Fees shall be used to defray the cost of
appeal for the Board of Supervisors and the
Planning Department. Such fee shall be re-
funded to the appellant in the event the Plan-
ning Department rescinds its determination or
the Board of Supervisors remands or rejects the
environmental impact report, negative declara-
tion, or determination of a categorical exemption
to the Planning Commission for revisions based
on issues related to the adequacy and accuracy of
the environmental determination. An exemption
from paying this appeal fee may be granted
when the requestor's income is not enough to pay
for the fee without affecting their abilities to pay
for the necessities of life, provided that the
person seeking the exemption demonstrates to
the Clerk of the Board of Supervisors or his/her
designee that they are substantially affected by
the proposed project.

(5) For preparation of an addendum to an
environmental impact report that has previously
been certified, pursuant to Section 15164 of the
State CEQA Guidelines: $7,780 plus time and
materials as set forth in Subsection (b)(2).

(6) For preparation of a supplement to a
draft or certified final environmental impact
report: One-half of the fee that would be required
for a full environmental impact report on the
same project, as set forth in Paragraph (2) above,
plus time and materials as set forth in Subsec-
tion (b)(2).

Supp. No. 9, June 2007

3473

California Environmental Quality Act
Procedures and Fees - Fees

Sec. 31.22.

(7) For reevaluation of a modified project
for which a negative declaration has been pre-
pared: $7,780 plus time and materials as set
forth in Subsection (b)(2).

(8) For preparation of a Certificate of Ex-
emption from Environmental Review determin-
ing that a project is categorically exempt, statu-
torily exempt, ministerial/nonphysical, an
emergency, or a planning and feasibility study:
$170 for applications that require only a stamp,
$4,785 as an initial fee for applications that
include preservation HRER review or require an
Exemption Certificate, plus time and materials
as set forth in Subsection (b)(2).

(9) For preparation of a letter of exemption
from environmental review: $170, plus time and
materials as set forth in Subsection (b)(2).

(10) For reactivating an application that
the Environmental Review Officer has deemed
withdrawn due to inactivity and the passage of
time, subject to the approval of the Environmen-
tal Review Officer and within six months of the
date the application was deemed withdrawn:
$190 plus time and materials to cover any addi-
tional staff costs.

(b) Payment.

(1) The fee specified in Subsection (a)(1)
shall be paid to the Planning Department at the
time of the filing of the environmental evalua-
tion application, and where an environmental
impact report is determined to be required, the
fee specified in Subsection (a)(2) shall be paid at
the time the preliminary draft environmental
impact report 1 (PDEIR 1) is prepared, except as
specified below. However, the Director of Plan-
ning or his/her designee may authorize phased
collection of the fee for a project whose work is
projected to span more than one fiscal year.

(2) The Planning Department shall charge
the applicant for any time and material costs
incurred in excess of the initial fee charged if
required to recover the Department's costs for
providing services. Provided, however, that where
a different limitation on time and materials is
set forth elsewhere in this Section, that limita-
tion shall prevail.

(3) The Controller will annually adjust the
fee amounts specified in Section 31.22(a)(5), (6),
(7), (8), (9), (10) and Section 31.23(d) by the
two-year average consumer price index (CPI)
change for the San Francisco/San Jose Primary
Metropolitan Statistical Area (PMSA). Effective
September 30, 2007, the fee amounts specified in
Section 31.22(a)(l)(2)(5), (6), (7), (8), (9), (10) and
Section 31.23(d) will increase 6.3% to support an
increase in departmental overhead from rent
costs at 1650 Mission Street.

(4) Any fraternal, charitable, benevolent or
any other nonprofit organization, that is exempt
from taxation under the Internal Revenue laws
of the United States and the Revenue and Taxa-
tion Code of the State of California as a bona fide
fraternal, charitable, benevolent or other non-
profit organization, or public entity that submits
an application for the development of residential
units all of which are affordable to low and
moderate income households, as defined by the
United State Housing and Urban Development
Department, for a time period that is consistent
with the policy of the Mayor's Office of Housing
and the San Francisco Redevelopment Agency
may defer payment of the fees specified herein,
with the exception of the fees payable pursuant
to Section 31.22(a)(3) and Section 31.22(a)(10)
herein, until the time of issuance of the building
permit, before the building permit is released to
the applicant; or (2) within one year of the date of
completion of the environmental review docu-
ment, whichever is sooner. This exemption shall
apply notwithstanding the inclusion in the de-
velopment of other nonprofit ancillary or acces-
sory uses.

(5) An exemption from paying the full fees
set forth in Section 31.22(a)(3) and Section
31.22(a)(10) herein may be granted when the
requestor's income is not enough to pay the fee
without affecting his or her abilities to pay for
the necessities of life, provided that the person
seeking the exemption demonstrates to the Di-
rector of Planning or his/her designee that he or
she is substantially affected by the proposed
project.

Supp. No. 9, June 2007

Sec. 31.22.

San Francisco - Administrative Code

3474

(6) Exceptions to the payment provisions
noted above may be made when the Director of
Planning or his/her designee has authorized
phased collection of the fee for a project whose
work is projected to span more than one fiscal
year.

(c) Refunds. When a request for an initial
evaluation or for preparation of an environmen-
tal impact report is (1) either withdrawn by the
applicant prior to publication of an environmen-
tal document or (2) deemed canceled by the
Planning Department due to inactivity on the
part of the applicant, then the applicant shall be
entitled to a refund of the fees paid to the
Department less the time and materials ex-
pended minus a $200 processing fee.

(d) Late Charges and Collection of Over-
due Accounts. The Director or his/her designee
shall call upon the Bureau of Delinquent Rev-
enues or duly licensed collection agencies for
assistance in collecting delinquent accounts more
than 60 days in arrears, in which case any
additional costs of collection may be added to the
fee amount outstanding. If the Department seeks
the assistance of a duly licensed collection agency,
the approval procedures of Administrative Code
Article 5, Section 10.39-1 et seq. will be appli-
cable.

(e) These amendments to fees related to the
Planning Department are intended to provide
revenues for the staffing and other support nec-
essary to provide more timely processing of ap-
plications within that Department. (Added by
Ord. 40-01, File No. 001007, App. 3/16/2001;
amended by Ord. 155-04, File No. 040820, App.
7/8/2004; Ord. 175-05, File No. 050917, App.
7/29/2005; Ord. 185-06, File No. 060697, App.
7/21/2006)

(Former Sec. 31.22; amended by Ord. 92-77, App.
3/18/77; repealed by Ord. 40-01)

SEC. 31.23. OTHER FEES.

(a) Where an initial evaluation or prepara-
tion of an environmental impact report and re-
lated environmental studies require the use of
special expertise or technical assistance not pro-
vided by the board, commission, department or

other person who is to carry out the project, such
expertise or assistance shall be paid for by such
board, commission, department or other person.
This payment shall be made either to the Plan-
ning Department or, if the Planning Department
so requests, directly to the party that will pro-
vide such expertise or technical assistance.

(b) Where outside consultants are used for
such purposes, and the project is to be directly
carried out by a person other than a board,
commission or department of the City, such con-
sultants shall report their findings directly to
the Planning Department.

(c) Where employees of the City are used for
such purposes, the costs of such employees shall
be paid to the board, commission or department
providing such employees.

(d) In addition to any filing fees required by
statute, the County Clerk shall collect a docu-
mentary handling fee in the amount of $25 for
each filing made pursuant to California Fish and
Game Code Section 711.4, Subdivision (d). (Added
by Ord. 40-01, File No. 001007, App. 3/16/2001;
Ord. 185-06, File No. 060697, App. 7/21/2006)
(Former Sec. 31.23; amended by Ord. 92-77, App.
3/18/77; repealed by Ord. 40-01)

[The next page is 3483]

Supp. No. 9, June 2007

ARTICLE V: SEVERABILITY

Sec. 31.24. Severability.
Editor's Note:

SEC. 31.24. SEVERABILITY.

(a) If any article, section, subsection, para-
graph, sentence, clause or phrase of this Chap-
ter, or any part thereof, is for any reason held to
be unconstitutional or invalid or ineffective by
any court of competent jurisdiction, or other
competent agency, such decision shall not affect
the validity or effectiveness of the remaining
portions of this Chapter 31 or any part thereof.
The Board hereby declares that it would have
passed each article, section, subsection, para-
graph, sentence, clause or phrase thereof, irre-
spective of the fact that any one or more articles,
sections, subsections, paragraphs, sentences,
clauses or phrases be declared unconstitutional
or invalid or ineffective.

(b) If the application of any provision or
provisions of this Chapter to any person, prop-
erty or circumstances is found to be unconstitu-
tional or invalid or ineffective in whole or in part
by any court of competent jurisdiction, or other
competent agency, the effect of such decision
shall be limited to the person, property or cir-
cumstances immediately involved in the contro-
versy, and the application of any such provision
to other persons, properties and circumstances
shall not be affected.

(c) This Section 31.24 shall apply to this
Chapter 31 as it now exists and as it may exist in
the future, including all modifications thereof
and additions and amendments thereto. (Added
by Ord. 40-01, File No. 001007, App. 3/16/2001)
(Former Sec. 31.24; amended by Ord. 92-77, App.
3/18/77; repealed by Ord. 40-01)

Sec. 31.25.

(Amended by Ord. 92-77, App. 3/18/77; repealed

by Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.26.

(Amended by Ord. 20-81, App. 1/9/81; Ord. 354-
95, App. 11/15/95; repealed by Ord. 40-01, File
No. 001007, App. 3/16/2001)

Sec. 31.27.

(Amended by Ord. 166-74, App. 4/11/74; repealed

by Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.28.

(Amended by Ord. 166-74, App. 4/11/74; repealed

by Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.29.

(Amended by Ord. 92-77, App. 3/18/77; repealed

by Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.31.

(Amended by Ord. 166-74, App. 4/11/74; repealed

by Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.35.

(Amended by Ord. 92-77, App. 3/18/77; repealed

by Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.36.

(Amended by Ord. 92-77, App. 3/18/77; repealed

by Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.41.

(Added by Ord. 134-73, App. 4/11/73; repealed by

Ord. 40-01, File No. 001007, App. 3/16/2001)

3483

Sec. 31.24. San Francisco -Administrative Code 3484

Sec. 31.45.

(Added by Ord. 134-73, App. 4/11/73; repealed by

Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.46.

(Added by Ord. 173-91, App. 5/1/91; amended by
Ord. 123-92, App. 5/1/92; Ord. 150-92, App. 5/29/
92; Ord. 317-92, App. 10/29/92; Ord. 149-93, App.
5/25/93; Ord. 214-94, App. 6/2/94; Ord. 177-95,
App. 6/2/95; Ord. 354-95, App. 11/15/95; Ord.
305-96, App. 7/25/96; Ord. 338-97, App. 8/29/97;
Ord. 169-98, App. 5/21/98; repealed by Ord. 40-
01, File No. 001007, App. 3/16/2001)

Sec. 31.47.

(Amended by Ord. 91-86, App. 3/21/86; repealed

by Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.50.

(Added by Ord. 134-73, App. 4/11/73; repealed by

Ord. 40-01, File No. 001007, App. 3/16/2001)

Sec. 31.60.

(Added by Ord. 154-91, App. 4/25/91; repealed by

Ord. 40-01, File No. 001007, App. 3/16/2001)

[The next page is 3493]

APPENDIX

Derivation Table

Current Section

Similar to Former Section

31.01

31.02

31.02, 31.03

31.03

31.04

31.05

31.41

31.06

31.11

31.07

31.14

31.08

31.17

31.09

31.22

31.10

31.23

31.11

31.24

31.12

31.25

31.13

31.26

31.14

31.27

31.15

31.28

31.16

—

31.17

31.29

31.18

—

31.19

31.35

31.20

31.31

31.21

31.45

31.22

31.46

31.23

31.47, 31.60

31.24

31.50

Disposition Table

Former Section

Similar to Current Section

31.01

31.02

31.03

31.02

31.04

31.03

31.05

31.04

31.11

31.06

31.12

—

31.13

—

31.14

31.07

31.15

—

31.16

—

31.17

31.08

31.21

31.22

31.09

31.23

31.10

31.24

31.11

31.25

31.12

31.26

31.13

31.27

31.14

31.28

31.15

31.29

31.17

31.31

31.20

31.35

31.19

31.36

—

3493

San Francisco - Administrative Code

3494

Disposition Table

Former Section

Similar to Current Section

31.41

31.05

31.45

31.21

31.46

31.22

31.47

31.23

31.50

31.24

31.60

31.23

[The next page is 3503]

CHAPTER 32: RESIDENTIAL REHABILITATION LOAN PROGRAM

Article Page

L IN GENERAL 3505

II. RESPONSIBILITIES OF BOARD OF SUPERVl SORS 3515

m. ADMINISTRATION OF PROGRAM... 3525

IV. CITIZENS ADVISORY COMMITTEE, AREA LOAN COMMITTEE AND

AREA RENT COMMITTEE 3535

V DESIGNATION OF RESIDENTIAL REHABILITATION AREAS AND

DEVELOPMENT OF PLAN FOR PUBLIC IMPROVEMENTS 3543

VI. LIMITATIONS ON AMOUNT OF LOAN 3553

VIL TERMS OF CONVENTIONAL RAP LOANS.... 3563

VIIL HARDSHIP LOANS 3577

IX. MISCELLANEOUS PROVISIONS 3587

3503

San Francisco - Administrative Code

[INTENTIONALLY LEFT BLANK]

ARTICLE I: IN GENERAL

Sec. 32.1. Purpose.

Sec. 32.2. Definitions.

Sec. 32.3. References to Public Officials

and Public Agencies.

SEC. 32.1. PURPOSE.

This Chapter provides for the administration
and financing of a Rehabilitation Assistance Pro-
gram (RAP) in the City and County of San
Francisco. The provisions of this Chapter consti-
tute the City and County's comprehensive resi-
dential rehabilitation financing program adopted
pursuant to the Marks-Foran Residential Reha-
bilitation Act of 1973, Section 37910, et seq., of
the Health and Safety Code and under Charter
Section 7.308.

The purpose of RAP is to improve the condi-
tion of housing and the quality of life in San
Francisco by providing a means through which
property owners in designated residential areas
in San Francisco which are deteriorating may
obtain financial assistance to rehabilitate their
property. It shall be the policy of RAP to main-
tain the existing diversity of San Francisco's
neighborhoods; to encourage the existence of low
and moderate income housing; and to preserve
the residential character of designated areas.
The methods to be used consist of concentrated
code enforcement; relocation assistance; low-
cost, long-term loans for property rehabilitation,
and public improvements necessary to ensure
the successful rehabilitation of the area. It shall
be the policy of the City and County to provide
adequate funding for these purposes as funds are
available. 0\mended by Ord. 116-77, App. 4/1/77)

SEC. 32.2. DEFINITIONS.

Unless the context otherwise requires, the
following definitions govern the construction of
this Chapter:

(a) 'Abatement Appeals Board" means the
board described in Section 203.1 through 203. IG
of the San Francisco Building Code.

(b) "Area Rent Committee" means the com-
mittee established in accordance with Section
32.34.

(c) "Bonds" means any bonds, notes, in-
terim certificates, debentures, or other obliga-
tions issued by the City and County pursuant to
this Chapter and which are payable exclusively
from revenues, as defined, and from any other
funds specified in this Chapter upon which the
bonds may be made a charge and from which
they are payable.

(d) "Citj^" means the City and County of
San Francisco.

(e) "Citizens Advisory Committee" means
the committee established in accordance with
Section 32.30.

(f) "Code enforcement area" has the same
meaning as residential rehabilitation area.

(g) "Conventional RAP loan" means any resi-
dential rehabilitation loan made pursuant to the
provisions of this Chapter which is not a hard-
ship loan.

(h) "Designated area" has the same mean-
ing as residential rehabilitation Area.

(i) "Finance" means the lending of money or
any other thing of value for the purpose of
residential rehabilitation and unless otherwise
indicated includes refinancing of outstanding
indebtedness of a participating party with re-
spect to property which is subject to residential
rehabilitation.

(j) "General property improvements" means
those items of residential rehabilitation which
are not necessary to meet either rehabilitation
standards or incipient violations thereof

(k) "Hardship loan" means an interest-free
loan with deferred pajmients of principal made
to a qualified low-income owner-occupant of prop-
erty subject to residential rehabilitation who
would not otherwise be able to pay the cost of
meeting rehabilitation standards.

3505

Sec. 32.2.

San Francisco - Administrative Code

3506

(1) "Incipient code violation" is a physical
condition which can be expected to deteriorate
into a violation of a rehabilitation standard within
two years.

(m) "Loan Committee" means the commit-
tee established in accordance with Section 32.32

(n) "Participating Party" means any person,
company, corporation, partnership, firm or other
entity or group of entities requiring financing for
residential rehabilitation pursuEint to the provi-
sions of this Chapter.

(0) "Program" means the Rehabilitation As-
sistance Program described in this Chapter and
includes, but is not limited to, the provisions for
code enforcement, rehabilitation financing, and
installation of public improvements in residen-
tial rehabilitation areas.

(p) "Rehabilitation Assistance Program" or
"RAP" has the same meaning as "program."

(q) "Rehabilitation standards" means the
standards established in the City and County
Housing Code and other applicable City and
County codes relating to the physical condition of
structures.

(r) "Rent Board" means the Residential Rent
Stabilization and Arbitration Board of the City
and County of San Francisco.

(s) "Residence" means any structure, resi-
dential or commercial, which is located in a
residential rehabilitation area.

(t) "Residential rehabilitation" means the
construction, reconstruction, renovation, replace-
ment, extension, repair, betterment, equipping,
developing, embellishing, or otherwise improv-
ing residences consistent with standards of
strength, effectiveness, fire resistance, durabil-
ity, and safety, so that such structures are satis-
factory and safe to occupy for residential pur-
poses and are not conducive to ill health,
transmission of disease, infant mortality, juve-
nile delinquency or crime because of any one or
more of the following factors:

(1) Defective design and character of physi-
cal construction;

(2) Faulty interior arrangement and exte-
rior spacing;

(3) Inadequate provisions for ventilation,
lighting and sanitation; or

(4) Obsolescence, deterioration and dilapi-
dation.

(u) "Residential rehabilitation area" means
the geographical area designated by the Board of
Supervisors as one for inclusion in a comprehen-
sive residential rehabilitation financing program
pursuant to the provisions of this Chapter. It
may also be referred to as the "designated area"
or the "Code enforcement area," the latter term
being used in Section 301 A of the Housing Code.

(v) "Residential rehabilitation loan fund"
means the fund established with the proceeds of
bonds issued pursuant to the provisions of this
Chapter or any other fund established for the
purpose of making loans to property owners
pursuant to the provisions of this Chapter.
(Amended by Ord. 269-82, App. 6/10/82)

SEC. 32.3. REFERENCES TO PUBLIC
OFFICIALS AND PUBLIC AGENCIES.

(a) Unless otherwise indicated, all public
officials and public agencies named in this Chap-
ter are officials and agencies of the City and
County.

(b) Whenever a City and County official is
referred to in this Chapter, the reference in-
cludes that official and his or her designee or
designees.

(c) All references to the Charter or to ordi-
nances are references to the Charter or to ordi-
nances of the City and County. (Added by Ord.
23-74, App. 1/9/74)

[The next page is 3515]

ARTICLE II: RESPONSIBILITIES OF BOARD OF SUPERVISORS

Sec. 32.10. Issuance of Bonds.
Sec. 32.11. Commitment to Enforce

Rehabilitation Standards and

Implement Plan for Public

Improvements.
Sec. 32.12. Designation of Residential

Rehabilitation Areas.

Sec. 32.13. Approval of Fees, Charges and

Interest Rates on Financing.
Sec. 32.14. Revision of Loan Charges.

SEC. 32.10. ISSUANCE OF BONDS.

The Board of Supervisors may from time to
time by resolution authorize procedures for the
issuance of bonds for the purpose of establishing
a loan fund to be used to assist property owners
with the rehabilitation of property located in
Residential Rehabilitation Areas. The repay-
ment of principal, interest and other charges on
the loans to property owners, together with such
other moneys as the Board of Supervisors may,
in its discretion, make available therefor, shall
be the sole source of funds pledged by the City
and County for repayment of such bonds. Bonds
issued under the provisions of this Chapter shall
not be deemed to constitute a debt or liability of
the City and County or a pledge of the faith and
credit of the City and County, but shall be
payable solely from the funds specified in this
Section. The issuance of such bonds shall not
directly, indirectly or contingently obligate the
Board of Supervisors to levy or to pledge any
form of taxation whatever therefor, or to make
any appropriation for their payment. (Added by
Ord. 23-74, App. 1/9/74)

SEC. 32.11. COMMITMENT TO
ENFORCE REHABILITATION
STANDARDS AND IMPLEMENT PLAN
FOR PUBLIC IMPROVEMENTS.

Prior to using funds generated by the issu-
ance of bonds pursuant to this Chapter for fi-
nancing residential rehabilitation in any residen-

tial rehabilitation area, the Board of Supervisors
shall adopt a resolution committing the City and
County, subject to budgetary and fiscal limita-
tions, to:

(a) Enforcement of rehabilitation standards
in 95 percent of the structures in the Residential
Rehabilitation Area; and

(b) Implementation of plan for public im-
provements in the Residential Rehabilitation
Area, which plan has been developed with citi-
zen participcLtion and adopted by the Board of
Supervisors after a public hearing.

Enforcement of rehabilitation standards shall
be deemed to have been completed when a struc-
ture has been brought into compliance with
rehabilitation standards; when a structure is the
subject of litigation directed to requiring compli-
ance with rehabilitation standards; or when the
owner of a structure is given a deferred time by
the Abatement Appeals Board for compliance
with specified rehabilitation standards which do
not constitute immediate life hazards as that
term is defined by the Director of the Depart-
ment of Public Works. (Added by Ord. 23-74,
App. 1/9/74)

SEC. 32.12. DESIGNATION OF
RESIDENTIAL REHABILITATION AREAS.

The Board of Supervisors shall be respon-
sible for designating, upon the recommendation
of the Chief Administrative Officer, residential
rehabilitation areas following the procedures and
criteria provided for in Article V. (Added by Ord.
23-74, App. 1/9/74)

SEC. 32.13. APPROVAL OF FEES,
CHARGES ^\ND INTEREST RATES ON
FINANCING.

The Board of Supervisors shall, upon the
recommendations of the Chief Administrative
Officer, approve by resolution prior to levy, all
fees, charges and interest rates to be charged

3515

Sec. 32.13. San Francisco -Administrative Code 3516

participating parties in connection with financ-
ing residential rehabilitation. (Added by Ord.
23-74, App. 1/9/74)

SEC. 32.14. REVISION OF LOAN
CHARGES.

Prior to any revision of the fees, charges and
interest rates for financing residential rehabili-
tation, the Board of Supervisors shall prescribe
standards for the revision of such fees, charges
and interest rates. Such standards:

(a) Shall be adopted by the Board of Super-
visors after a public hearing preceded by public
notice to affected parties; and

(b) May reflect only changes in interest
rates on the City and County's bonds, losses due
to defaults, and bona fide changes in loan servic-
ing charges related to the administration of a
program under the provisions of this Chapter.
(Added by Ord. 23-74, App. 1/9/74)

[The next page is 3525]

ARTICLE III: ADMINISTRATION OF PROGRAM

Sec. 32.20. Responsibility for

Administration of Program.

Sec. 32.21. Rules and Regulations.

Sec. 32.22. Management of Bond Proceeds.

Sec. 32.23. Recommendation of Fees,

Charges and Interest Rates on

Financing.
Sec. 32.24. Notice of Defaults and

Foreclosures.
Sec. 32.25. Publication of Explanatory

Brochure.

SEC. 32.20. RESPONSIBILITY FOR
ADMINISTRATION OF PROGRAM.

The Chief Administrative Officer shall be
responsible for administration of all aspects of
the Rehabilitation Assistance Program except
those aspects for which responsibility is specifi-
cally retained by the Board of Supervisors or
assigned by the Board of Supervisors to another
City and County agency. The Chief Administra-
tive Officer, and each City and County agency
assigned responsibilities by or pursuant to this
Chapter, shall have all such authority as may be
reasonably necessary to carry out those respon-
sibilities. While retaining overall responsibility
for administration of the program, the Chief
Administrative Officer shall utilize the services
of the Department of Public Works in connection
with the code enforcement aspects of the pro-
gram, and the services of the Real Estate Depart-
ment in connection with the rehabilitation financ-
ing aspects of the program. The Chief
Administrative Officer may also request the as-
sistance of any other City and County agency in
meeting his or her responsibilities under this
program. (Added by Ord. 23-74, App. 1/9/74)

SEC. 32.21. RULES AND REGULATIONS.

The Chief Administrative Officer shall pro-
mulgate such rules and regulations as he or she
may deem appropriate to carry out the provi-

sions of this Chapter. These rules and regula-
tions shall be developed with the participation of
the Citizen Advisory Committees and the Rent
Board. A copy of all such rules and regulations
shall be available for review by the public during
regular business hours in the office of the Chief
Administrative Officer, the office of the Clerk of
the Board of Supei'visors, the Department of
Public Works, and in every other office estab-
lished for the purpose of carrying out this pro-
gram. (Added by Ord. 269-82, App. 6/10/82)

SEC. 32.22. MANAGEMENT OF BOND
PROCEEDS.

Unless provided otherwise in any bond reso-
lution adopted pursuant to the provisions of this
Chapter, the Chief Administrative Officer, acting
on the recommendation of the Controller:

(a) May invest and reinvest both the bond
proceeds and the revenues from the financing of
residential rehabilitation, and

(b) May manage fiscally the proceeds of
bonds issued for the purpose of establishing a
residential rehabilitation loan fund, or

(c) Together with the Purchaser may enter
into contractual arrangement with private lend-
ing institutions or trust companies to manage
the Residential Rehabilitation Loan Fund, in-
cluding investment and reinvestment of the funds,
disbursements from the fund and collection of
revenues. (Added by Ord. 23-74, App. 1/9/74)

SEC. 32.23. RECOMMENDATION OF
FEES, CHARGES AND INTEREST RATES
ON FINANCING.

The Chief Administrative Officer, acting on
the advice of the Controller, shall recommend to
the Board of Supervisors for adoption:

(a) The fees, charges and interest raites which
will be charged participating parties in connec-
tion with financing residential rehabilitation;
and

3525

Sec. 32.23. San Francisco - Administrative Code 3526

(b) Revisions, as necessary, of the fees,
charges and interest rates levied on participat-
ing parties, consistent with the standards adopted
by the Board of Supervisors pursuant to Section
32.14. (Added by Ord. 23-74, App. 1/9/74)

SEC. 32.24. NOTICE OF DEFAULTS AND
FORECLOSURES.

When there is a default on a conventional
RAP loan secured by a deed of trust naming the
City and County as a beneficiary and the prop-
erty becomes subject to foreclosure procedures,
the Chief Administrative Officer shall so inform
the Citizens Advisory Committee for the residen-
tial rehabilitation area where the property is
located. (Added by Ord. 23-74, App. 1/9/74)

SEC. 32.25. PUBLICATION OF
EXPLANATORY BROCHURE.

Subject to funds being available, the Chief
Administrative Officer shall cause to be pub-
lished and available to the public a brochure
describing RAP and how it affects both tenants
and property owners. (Added by Ord. 23-74, App.
1/9/74)

[The next page is 3535]

ARTICLE IV: CITIZENS ADVISORY COMMITTEE, AREA LOAN
COMMITTEE AND AREA RENT COMMITTEE

Sec. 32.30. Citizens Advisory Committee —
Membership.

Sec. 32,30-1. Citizens Advisory Committee —
Membership.

Sec. 32.31. Citizens Advisory Committee —
Functions.

Sec. 32.32. Loan Committee — Membership.
Sec. 32.33. Loan Committee — Functions.
Sec. 32.34. Area Rent Committee.

SEC. 32.30. CITIZENS ADVISORY
COMMITTEE— MEMBERSHIP.

(a) There shall be established a Citizens
Advisory Committee for each residential reha-
bilitation area. Each Citizens Advisory Commit-
tee shall consist of not more than 11 persons.

(b) Property owners shall constitute six of
the 11 members when 50 percent or more of the
structures are owner occupied. The balance of
the membership shall be tenants.

(c) Tenants shall constitute six of the 11
members when less than 50 percent of the struc-
tures are owner occupied. The balance of the
membership shall be property owners.

(d) The determination as to whether 50
percent or more of the structures are owner-
occupied shall be made by Director of Planning
at the time an area is proposed for designation as
a RAP area by the Director. (Amended by Ord.
567-77, App. 12/29/77)

SEC. 32.30-1. CITIZENS ADVISORY
COMMITTEE— MEMBERSHIP.

(a) There shall be established a Citizens
Advisory Committee for each residential reha-
bilitation area. Each Citizens Advisory Commit-
tee shall consist of 11 persons.

(b) Memibers of the Citizens Advisory Com-
mittee shall be selected from the following groups
which are defined only for the purposes of Sec-
tion 32.30-1.

(1) "Property owners" means persons own-
ing property in the residential rehabilitation
area.

(2) "Employees of property owners" means
residents of the residential rehabilitation area
who are employed by area property owners for 20
or more hours per month.

(3) "Agents of property owners" means resi-
dents of the residential rehabilitation area who
represent an area property owner in dealing
with third persons for any purpose.

(4) "Tenants" means residents of the resi-
dential rehabilitation area who are not area
property owners, employees of property owners,
or agents of property owners as defined in this
Section.

(c) At least one property owner, and either
additional property owners, employees of prop-
erty owners, or agents of property owners shall
constitute six of the 11 members of the Citizens
Advisory Committee when 50 percent of the
structures are owner-occupied. The balance of
the membership shall be tenants.

(d) Tenants shall constitute six of the 11
members of the Citizens Advisory Committee
when less than 50 percent of the structures are
owner-occupied. The balance of the membership
shall consist of at least one property owner and
either additional property owners, employees of
property owners, or agents of property owners.

(e) The determination as to whether 50 per-
cent or more of the structures are owner-
occupied shall be made by the Director of Plan-
ning at the time an area is proposed for designation
as a RAP area by the Director.

3535

Sec. 32.30-1.

San Francisco - Administrative Code

3536

(f) If the number of nominees for any con-
stituency on the Citizens Advisory Committee
exceeds the number of openings for that constitu-
ency, a pubhcly announced election shall be held
to select the members of that constituency and
only members of that constituency may vote in
that election. Property owners, employees of prop-
erty owners, and agents of property owners shall
constitute one constituency. Tenants shall consti-
tute a separate constituency.

(g) All nominations, appointments and elec-
tions necessary to carry out the purposes of this
Section shall be in accordance with rules and
regulations promulgated by the Chief Adminis-
trative Officer or the person to whom responsi-
bility for administration of the program has been
delegated.

(h) The provision of this Section shall apply
only in residential rehabilitation assistance ar-
eas designated by resolution of the Board of
Supervisors pursuant to Section 32.43 on or after
July 1, 1977. (Added by Ord. 225-78, App. 5/1/78)

SEC. 32.31. CITIZENS ADVISORY
COMMITTEE— FUNCTIONS.

The functions of the Citizens Advisory Com-
mittee include the following:

(a) Assist the Director of Planning and other
relevant City and County departments in devel-
oping a plan for public improvements in the
residential rehabilitation area;

(b) Participate with the Chief Administra-
tive Officer in development of the rules and
regulations governing implementation of the pro-
gram;

(c) Assist the Chief Administrative Officer
in implementation of the Residential Rehabilita-
tion Program in the Residential Rehabilitation
Area;

(d) Appoint a representative from the Resi-
dential Rehabilitation Area to the Loan Commit-
tee;

(e) Appoint members of the Area Rent Com-
mittee;

(f) Develop by-laws for the operation of the
Citizens Advisory Committee, which by-laws shall
be subject to the approval of the Chief Adminis-
trative Officer;

(g) Assist the Chief Administrative Officer
in his or her selection of the liaison staff; and

(h) Act as liaison between the Chief Admin-
istrative Officer and the owners of property in
and residents of the Residential Rehabilitation
Area in solving problems which arise in the
course of implementation of the program, (Added
by Ord. 23-74, App. 1/9/74)

SEC. 32.32. LOAN COMMITTEE-
MEMBERSHIP.

There shall be a loan committee consisting of
the following members:

(a) One individual from each Residential
Rehabilitation Area who shall be appointed by
the Citizens Advisory Committee for the area;

(b) One individual who is a permanent em-
ployee of the Real Estate Department; and

(c) One individual qualified in the field of
real estate lending and financing who shall be
appointed by the Chief Administrative Officer,
unless provided otherwise in any bond resolution
issued pursuant to the provisions of this Chap-
ter. (Added by Ord. 23-74, App. 1/9/74)

SEC. 32.33. LOAN COMMITTEE-
FUNCTIONS.

The functions of Loan Committee are as
follows:

(a) The Loan Committee shall periodically
review the rules and procedures and standards
for the granting of residential rehabilitation loans
and shall recommend changes as needed to the
chief Administrative Officer.

(b) The Loan Committee shall review and
recommend approval or denial of applications
required to be considered by the Loan Commit-
tee by or pursuant to this Chapter.

(c) The Loan Committee shall operate in an
manner consistent with by-laws which shall be
developed by the Chief Administrative Officer,
and the recommendations of approval or denial
of loan applications shall be in accordance with

3537 Residential Rehabilitation Loan Program - Citizens Advisory Sec. 32.34.

Committee, Area Loan Committee And Area Rent Committee

the requirements contained in, or adopted pur-
suant to, this Chapter. (Added by Ord. 23-74,
App. 1/9/74)

SEC. 32.34. AREA RENT COMMITTEE.

There shall be an Area Rent Committee es-
tablished in each Residential Rehabilitation Area.
Each Area Rent Committee shall consist of two
tenants and two landlords living in the area who
shall be appointed by the Citizens Advisory Com-
mittee pursuant to procedures established by the
Chief Administrative Officer. (Added by Ord.
23-74, App. 1/9/74)

[The next page is 3543]

San Francisco - Administrative Code

[INTENTIONALLY LEFT BLANK]

ARTICLE V: DESIGNATION OF RESIDENTIAL REHABILITATION AREAS AND
DEVELOPMENT OF PLAN FOR PUBLIC IMPROVEMENTS

Sec. 32.40. Provisions Supercede Section
301.A of Housing Code.

Sec. 32.41. Initial Selection of Areas for
Designation as Residential
Rehabilitation Areas by the
Director of Planning.

Sec. 32.42. Recommendation of an Area for
Designation as a Residential
Rehabilitation Area by the Chief
Administrative Officer.

Sec. 32.43. Designation of Residential
Rehabilitation Areas by the
Board of Supervisors.

Sec. 32.44. Plan for Public Improvements.

SEC. 32.40. PROVISIONS SUPERSEDE
SECTION 301.A OF HOUSING CODE.

The provisions of this Article control designa-
tion of areas for residential rehabilitation assis-
tance without regard to the provisions of Section
301.A of the Housing Code. (Added by Ord.
23-74, App. 1/9/74)

SEC. 32.41. INITIAL SELECTION OF
AREAS FOR DESIGNATION AS
RESIDENTIAL REHABILITATION AREAS
BY THE DIRECTOR OF PLANNING.

(a) The Director of Planning shall recom-
mend to the Chief Administrative Officer areas
to be considered for designation by the Board of
Supervisors.

(b) Prior to recommending an area, the Di-
rector of Planning shall conduct one or more
public meetings in the area. Residents, property
owners and representatives of neighborhood or-
ganizations shall be invited to attend these meet-
ings. At these meetings the Director of Planning
shall explain the rehabilitation assistance pro-
gram, shall invite comments from the public and
shall raise for discussion the following issues:

(1) Would rent increases or demolitions re-
sulting from the cost of meeting rehabilitation
standards result in widespread displacement of
tenants;

(2) Would RAP assist neighborhood-initi-
ated improvement programs;

(3) Would RAP preserve and improve the
social, ethnic, and economic integration of the
area; and

(4) Is there support from residents of the
area and from the owners of property in the area
for institution of the RAP?

(c) In deciding whether to recommend an
area for designation as a Residential Rehabilita-
tion Area, the Director of Planning shall take
into consideration the comments from and the
discussions with the public at the hearings held
pursuant to Subsection (b). With each recommen-
dation of a Residential Rehabilitation Area, the
Director of Planning shall convey an opinion to
the Chief Administrative Officer concerning the
following factors:

(1) The extent of public support for designa-
tion of the area as a Residential Rehabilitation
Area;

(2) Whether there is a substantial number
of deteriorating structures in the area which do
not conform to rehabilitation standards;

(3) Whether there is a need for financial
assistance for residential rehabilitation to arrest
the deterioration of the area;

(4) Whether financing of residential reha-
bilitation in the area is economically feasible;

(5) Whether rent increases or demolitions
resulting from the cost of meeting rehabilitation
standards would result in widespread displace-
ment of tenants;

(6) Whether institution of RAP in the area
would assist in neighborhood initiated improve-
ment programs; and

(7) Whether institution of RAP would pre-
serve and improve the social, ethnic, and eco-
nomic integration of the area. (Added by Ord.
23-74, App. 1/9/74)

3543

Sec. 32.42.

San Francisco - Administrative Code

3544

SEC. 32.42. RECOMMENDATION OF AN
AREA FOR DESIGNATION AS A
RESIDENTIAL REHABILITATION AREA
BY THE CHIEF ADMINISTRATIVE
OFFICER.

If, after reviewing the recommendation of the
Director of Planning for designation of an area,
the Chief Administrative Officer is satisfied that
the area is appropriate for designation as a
Residential Rehabilitation Area, the Chief Ad-
ministrative Officer shall recommend to the Board
of Supervisors that it designate the area as a
Residential Rehabilitation Area. Along with any
recommendation of an area for designation as a
Residential Rehabilitation Area, the Chief Ad-
ministrative Officer shall transmit to the Board
of Supervisors the Director of Planning's opinion
given pursuant to Section 32.41(c). (Added by
Ord. 23-74, App. 1/9/74)

SEC. 32.43. DESIGNATION OF
RESIDENTIAL REHABILITATION AREAS
BY THE BOARD OF SUPERVISORS.

Residential Rehabilitation Areas shall be so
designated by resolution of the Board of Super-
visors following a public hearing and findings
that:

(a) There is a substantial number of dete-
riorating structures in the area which do not
conform to rehabilitation standards;

(b) Low-cost, long-term property owner loans
are necessary to arrest the deterioration of the
area; and

(c) Based upon currently available data and
past experience with residential rehabilitation
assistance projects (including experience with
federally assisted code enforcement areas), fi-
nancing of residential rehabilitation in the area
is economically feasible. (Added by Ord. 23-74,
App. 1/9/74)

SEC. 32.44. PLAN FOR PUBLIC
IMPROVEMENTS.

With the participation of the Citizens Advi-
sory Committee, and in consultation with other
relevant City and County agencies, the Director
of Planning shall develop a proposed plan for

public improvements for each Residential Reha-
bilitation Area. The proposed plan for public
improvements for each area shall include all
items the Director of Planning deems necessary
to the successful rehabilitation of the Residential
Rehabilitation Area and shall include consider-
ation of health, recreation, child care, education,
culture and safety facilities and services. The
Director of Planning shall submit the proposed
plan for public improvements in a Residential
Rehabilitation Area to the Board of Supervisors.
Prior to submittal of the plan for public improve-
ments to the Board of Supervisors, the Director
of Planning shall transmit it to the Citizens
Advisory Committee for its recommendations.
The Citizens Advisory Committee's recommen-
dations shall be transmitted to the Board of
Supervisors along with the proposed plan. The
Board of Supervisors shall consider the plan at a
public hearing. After such modification of the
proposed plan, if any, as the Board of Supervisors
deems necessary, the Board shall adopt a plan
for public improvements for that area. (Added by
Ord. 23-74, App. 1/9/74)

[The next page is 3553]

ARTICLE VI: LIMITATIONS ON AMOUNT OF LOAN

Sec. 32.50.

Sec. 32.51.
Sec. 32.52.

Sec. 32.53.
Sec. 32.54.

Maximum Indebtedness on

Property.

Maximum Amount of Loan.

Limitations on Use of Loan for

General Property

Improvements.

Refinancing.

Limitation Based on Fair

Market Value of Work.

SEC. 32.50. MAXIMUM INDEBTEDNESS
ON PROPERTY.

Outstanding loans on the property to be
rehabilitated, including the amount of the loan
for rehabilitation, shall not exceed 80 percent of
the anticipated after-rehabilitation value of the
property to be rehabilitated, as determined by
the Chief Administrative Officer, except that the
Chief Administrative Officer may authorize loans
of up to 95 percent of the anticipated after-
rehabilitation value of the property if:

(a) Such loans are made for the purpose of
rehabilitating the property for residential pur-
poses;

(b) There is demonstrated need for such
higher limit; and

(c) There is a high probability that the
value of the property will not be impaired during
the term of the loan. (Added by Ord. 23-74, App.
1/9/74)

SEC. 32.51. MAXIMUM AMOUNT OF
LOAN.

The maximum loan for rehabilitation shall be
as follows: single family, $30,000; two — three
units, $10,000 per unit; four or more units,
$7,500; commercial, $5,000 per unit; guest rooms,
as defined in Section 203.7 of the Housing Code,
$2,500 per unit.

The Chief Administrative Officer may ap-
prove a loan in excess of these amounts following
guidelines established by the Chief Administra-

tive Officer; provided, that in no case may the
loan exceed $17,500 per unit for dwelling units
other than in single family dwellings and $11,500
per unit for guest rooms. (Amended by Ord.
30-78, App. 1/13/78)

SEC. 32.52. LIMITATIONS ON USE OF
LOAN FOR GENERAL PROPERTY
IMPROVEMENTS.

No more than 20 percent of any loan for
residential rehabilitation shall be used for gen-
eral property improvements except that in the
case of owner-occupied, one-to-four dwelling unit
properties, up to 40 percent of the loan may be
used for general property improvements. (Added
by Ord. 23-74, App. 1/9/74)

SEC. 32.53. REFINANCING.

(a) A loan maj^ be made to refinance an
existing indebtedness on a residence if the cost of
meeting rehabilitation standards and correcting
incipient violations thereof for the residence equals
at least 20 percent of the principal amount of the
loan; and

(1) If the sum of the monthly principal and
interest payments on the proposed loan for reha-
bilitation and the monthly payments on existing
debt secured by the property, plus property taxes
and insurance, would result in total monthly
payments that would exceed 20 percent of the
applicant's total monthly income; or

(2) If the Loan Committee recomraends ap-
proval of refinancing and the recommendation is
accepted by the Chief Administrative Officer;

(b) If the Chief Administrative Officer does
not accept the recommendation of the Loan Com-
mittee regarding refinancing, he or she shall
give written reasons for the refusal to accept
such recommendation.

(c) In deciding whether to recommend that
refinancing be made available to any particular
applicant, the Loan Committee shall adhere to
guidelines for refinancing which shall be adopted

3553

Sec. 32.53.

San Francisco - Administrative Code

3554

by the Chief Administrative Officer. In develop-
ing guideUnes for refinancing, the Chief Admin-
istrative Officer shall take into consideration the
availability of funds for financing residential
rehabilitation, the need to prevent significant
rent increases which would result in a hardship
for tenants, and the need to prevent speculators
from profiting from the use of residential reha-
bilitation financing. (Amended by Ord. 116-77,
App. 4/1/77)

SEC. 32.54. LIMITATION BASED ON
FAIR MARKET VALUE OF WORK.

(a) Prior to the granting of any loan over
$20,000 under this Chapter, a qualified estima-
tor will make an on-premises inspection of the
applicant's property and certify, in writing, that
the estimated cost of the recommended work, as
detailed in the job specifications, is not more
than 10 percent above fair market value. No loan
will be granted in an amount exceeding 10 per-
cent of fair market value for the work specified or
higher than the lowest bid received, whichever is
less, without the approval of the Chief Adminis-
trative Officer

(b) Where loan is under $20,000 and low bid
exceeds estimate of building inspector by 10
percent, the Real Estate Department will hire an
estimator to certify the fair market value of the
job specifications.

(1) Who is not a City employee; but

(2) Who is selected by the Chief Administra-
tive Officer because he or she is qualified and
experienced in the area of residential rehabilita-
tion.

The estimator shall operate under the direc-
tion of the Director of the Real Estate Depart-
ment.

(d) A property owner wishing to challenge
the low bid or the estimator's value may hire a
licensed estimator if he or she so desires.

(e) The Chief Administrative Officer shall,
semi-annually, direct a report to the Board of
Supervisors setting forth a list of the loans which
were in excess of 10 percent of the estimated fair
market value pursuant to the provisions of Para-

graph (a) giving the reasons for approval in each
case. (Amended by Ord. 274-78, App. 6/9/78)

[The next page is 3563]

ARTICLE VII: TERMS OF CONVENTIONAL RAP LOANS

Sec. 32.60. Eligibility for Loans.

Sec. 32.61. Maximum Repayment Period

for Loan; Initiation of Payments

After Rehabilitation.
Sec. 32.62. Prepayment Penalties.
Sec. 32.63. Security for Loan.
Sec. 32.64. Insurance.
Sec. 32.65. Impound Account.
Sec. 32.66. Transfer of Loans.
Sec. 32.67. Interest Rates and Other Loan

Charges.
Sec. 32.68. Variable Interest Rate.
Sec. 32.69. Tenant Moving Costs and Right

of First Refusal.
Sec. 32.70. Open Housing.
Sec. 32.71. Equal Emplojmient Opportunity.
Sec. 32.71-1. Performance of Work by

Licensed General Building

Contractor.

Sec. 32.72. Enforcement of Loan Provisions.
Sec. 32.73. Rent Increase Limitations for

Areas Designated Prior to July

1, 1977.
Sec. 32.73-1. Rent Increase Limitations for

Areas Designated on or After

July 1, 1977.
Sec. 32.74. Rent Increase Protest

Procedures.
Sec. 32.75. Sanctions for Violation of Rent

Increase Limitations.
Sec. 32.75-1. Evictions.

SEC. 32.60. ELIGIBILITY FOR LOANS.

(a) Each owner of property located within a
residential rehabilitation area is eligible for a
conventional RAP loan, provided the owner dem-
onstrates to the satisfaction of the Chief Admin-
istrative Officer the ability to repay such a loan;
applies for the loan within a time period to be
designated by the Chief Administrative Officer;

and can meet the other requirements of this
Chapter. The property owner shall agree to all
conditions of the loan agreement as a prerequi-
site to obtaining a loan. No elective officer of the
state or any of its subdivisions shall be eligible to
receive a loan under the provisions of this Chap-
ter.

(b) Any owner who is denied a loan by the
Chief Administrative Officer on the grounds that
the owner does not meet eligibility requirements
may appeal the decision to the Loan Committee.
The Loan Committee shall review the applica-
tion for a loan and make a recommendation
regarding approval or denial to the Chief Admin-
istrative Officer. In reviewing the application,
the Loan Committee shall give due consideration
to the need for the loan to be made in order to
accomplish the purposes of the program, the
risks to the City and County of granting the loan,
and the ability of the property to support the
loan as well as to the reasons for denial of the
application by the Chief Administrative Officer.
If the Chief Administrative Officer does not ac-
cept the recommendations of the Loan Commit-
tee, he or she shall give written reasons for the
refusal to approve the loan. (Added by Ord.
23-74, App. 1/9/74)

SEC. 32.61. MAXIMUM REPAYMENT
PERIOD FOR LOAN; INITIATION OF
PAYMENTS AFTER REHABILITATION.

(a) The maximum repayment period for a
conventional RAP loan shall be 20 years or ^U of
the economic life of the property, whichever is
less.

(b) Subject to budgetary and fiscal limita-
tions, payments on a conventional RAP loan
shall not be required to commence prior to comple-
tion of the improvements for which such loan is
made; provided that payments shall begin no
later than six months after an initial disburse-
ment from proceeds of the loan. The monthly
pajrment due under the loan shall be adjusted to

3563

Sec. 32.61.

San Francisco - Administrative Code

3564

insure repayment of the principal and interest
due on the loan within the time required by
paragraph (a) of this Section. (Added by Ord.
23-74, App. 1/9/74)

SEC. 32.62. PREPAYMENT PENALTIES.

There shall be no penalty assessed for pre-
payment of any conventional RAP loan. (Added
by Ord. 23-74, App. 1/9/74)

SEC. 32.63. SECURITY FOR LOAN.

Unless provided otherwise in any bond reso-
lution issued pursuant to the provisions of this
Chapter, every conventional RAP loan shall be
secured by a deed of trust naming the City and
County as beneficiary of the trust. (Added by
Ord. 23-74, App. 1/9/74)

SEC. 32.64. INSURANCE.

All conventional RAP loan agreements shall
provide that so long as the loan or any portion of
it is outstanding, the owner of the property
subject to the loan shall carry adequate property
insurance. The Chief Administrative Officer shall
establish standards for determining when prop-
erty insurance is adequate. (Added by Ord. 23-
74, App. 1/9/74)

SEC. 32.65. IMPOUND ACCOUNT.

If the Chief Administrative Officer deems it
desirable and necessary to effectuate the pur-
poses of the program that an impound account be
required to assure taxes, insurance, or a main-
tenance reserve, he or she may include such a
requirement in any conventional RAP loan agree-
ment. (Added by Ord. 23-74, App. 1/9/74)

SEC. 32.66. TRANSFER OF LOANS.

(a) The unpaid amount of a conventional
RAP loan shall be due and payable upon sale or
transfer of the ownership of the property, except
that assignment of the unpaid amount of such a
loan to a purchaser or transferee may be permit-
ted when the Chief Administrative Officer deter-
mines that hardship conditions exist and the
prospective owner qualifies for a loan on the
basis of current loan eligibility standards.

(b) If the holder of a conventional RAP loan
is dissatisfied with the Chief Administrative
Officer's refusal to permit transfer of the unpaid
amount of the loan because of a finding that
hardship conditions do not exist, the holder of
the loan may request review of the Chief Admin-
istrative Officer's determination by the Loan
Committee. If the Loan Committee recommends
a finding that hardship conditions exist, the
Chief Administrative Officer shall either accept
that recommendation or give written reasons for
the refusal to accept it.

(1) When the owner of property subject to a
conventional RAP loan is forced to sell the prop-
erty and the property cannot be sold without a
substantial loss of equity unless the loan is
transferable;

(2) When the income of a prospective pur-
chaser of property subject to a conventional RAP
loan is at or below income standards to be
established by the Chief Administrative Officer;
or

(3) When the prospective purchaser is un-
able to obtain financing in the private sector
because of age, disability or sex; or

(4) When transfer of the loan is necessary to
prevent significant rent increases.

(d) The Chief Administrative Officer shall
develop standards which shall be applied in
making determinations required under this Sec-
tion. (Added by Ord. 23-74, App. 1/9/74)

SEC. 32.67. INTEREST RATES AND
OTHER LOAN CHARGES.

The interest rate and any other charges for a
conventional RAP loan shall be established pur-
suant to the provisions of Sections 32.13 and
32.23, and may include:

(a) The interest charged the City and County
on funds borrowed to carry out the provisions of
this Chapter;

(b) An amount needed to provide for pos-
sible defaults on outstanding loans;

3565

Residential Rehabilitation Loan Program
Conventional RAP Loans

Terms of

Sec. 32.72.

(d) An amount to cover the cost of making
hardship loans (as provided for in Article VIII);
and

(e) An amount to cover the costs of issuing
bonds. (Added by Ord. 23-74, App. 1/9/74)

SEC. 32.68. VARL^LE INTEREST RATE.

In connection with a conventional RAP loan,
the loan agreement may provide for a variable
interest rate. If the loan agreement does provide
for a variable interest rate, the terms of the loan
agreement and any change in the interest rate or
other charges shall conform to the requirements
of Sections 37917 of the Health and Safety Code
of the State of California relating to the use of
variable interest rates in connection with financ-
ing residential rehabilitation. (Added by Ord.
23-74, App. 1/9/74)

SEC. 32.69. TENANT MOVING COSTS
AND RIGHT OF FIRST REFUSAL.

All conventional RAP loan agreements shall
provide that, in the case of dwelling units which
must be vacated because of residential rehabili-
tation to be performed on the structures where
they are located:

(a) A tenant who must vacate a dwelling
unit shall have the right of first refusal to occupy
that unit at a rent adjusted in accordance with
the San Francisco Administrative Code when
rehabilitation of the property is completed;

(b) The property owner shall give each ten-
ant affected written notice 30 days prior to the
date the tenant must vacate of the following:

(1) That the tenant has the right to first
refusal to reoccupy the unit vacated when reha-
bilitation of the property is completed;

(2) That relocation assistance may be avail-
able and that relocation information may be
obtained from the Chief Administrative Officer,
Room 289, City Hall, San Francisco; and

(3) That the tenant may be subject to cer-
tain protections under the Rent Ordinance and
that information concerning such protection is
available from the Rent Board, 170 Fell Street,
Room 16, San Francisco.

(c) A copy of the notice specified in clause
(b) shall be forwarded to the Rent Board.
(Amended by Ord. 112-83, App. 3/11/83)

SEC. 32.70. OPEN HOUSING.

All conventional RAP loan agreements shall
provide that so long as the loan or any portion of
it is outstanding the property shall be open upon
sale or rental of all or any portion thereof, to all
persons regardless of race, color, religion, na-
tional origin or ancestry. (Added by Ord. 23-74,
App. 1/9/74)

SEC. 32.71. EQUAL EMPLOYMENT
OPPORTUNITY.

All conventional RAP loan agreements shall
provide that all contracts and subcontracts let
for residential rehabilitation financed under this
Chapter are to be let without regard to the race,
sex, marital status, color, religion, national ori-
gin or ancestry of the contractor or subcontrac-
tor. Further, all conventional RAP loan agree-
ments shall provide that any contractor or
subcontractor engaged in residential rehabilita-
tion financed under this Chapter must agree to
provide equal opportunity for employment with-
out regard to race, sex, marital status, color,
religion, national origin or ancestry. (Added by
Ord. 23-74, App. 1/9/74)

SEC. 32.71-1. PERFORMANCE OF WORK
BY LICENSED GENERAL BUILDEVG
CONTRACTOR.

A licensed general building contractor having
in his or her contract more than two unrelated
building trades or crafts may do or superintend
the whole or any part of residential rehabilita-
tion without regard to the provisions of Section E
I of the Plumbing Code or Section 41 of the
Electrical Code. (Added by Ord. 23-74, App.
1/9/74)

SEC. 32.72. ENFORCEMENT OF LOAN
PROVISIONS.

The provisions of Section 32.70 and the pro-
visions of Section 32.71 is they relate to enforce-
ment of nondiscrimination on the basis of race,
sex, marital status, color, religion, national ori-

Sec. 32.72.

San Francisco - Administrative Code

3566

gin or ancestry, are enforceable by the Human
Rights Commission. The enforcement powers,
responsibilities and procedures of the Human
Rights Commission set forth in Chapters 12A
and 12B of the San Francisco Administrative
Code shall be applicable to carry out the
Commission's responsibilities under this Chap-
ter. In addition, pursuant to rules to be adopted
by the Chief Administrative Officer, violation of
the loan agreement provisions required by Sec-
tions 32.69, 32.70, and 32.71 may result in any
outstanding financing obtained pursuant to the
loan agreement becoming immediately due and
payable. (Added by Ord. 23-74, App. 1/9/74)

SEC. 32.73. RENT EVCREASE
LIMITATIONS FOR AREAS DESIGNATED
PRIOR TO JULY 1, 1977.

(a) The property owner shall agree that
during the time any conventional RAP loan is
outstanding, rent for any dwelling unit in the
rehabilitated residence shall not exceed the base
rent plus actual increased costs to the owner in
the form of monthly loan payments, property
taxes, insurance, maintenance, and annual ad-
justments tied to the Bay Area Cost of Living
Index.

(b) The Chief Administrative Officer shall
calculate the annual cost of living adjustment on
the basis of the Bay Area cost of living index as of
January 1st each year, and shall announce to
both property owners and tenants the adjust-
ment no later than 30 days following publication
of such figures by the United States Department
of Commerce.

(c) Base rent date is the 180th day preced-
ing the date of designation of the area for resi-
dential rehabilitation by the Board of Supervi-
sors or the date 10 days preceding the first public
meeting conducted in a residential rehabilitation
area by the Director of Planning, whichever is
earlier in time.

(d) Base rent for a dwelling unit is the rent
charged for this dwelling unit on the base rent
date; except that if no rent was being charged on
the base rent date, or if the property owner
believes that the rent charged on the base rent

date was unreasonably low due to special condi-
tions, the property owner may petition the Chief
Administrative Officer to establish a base rent or
to revise the base. The Chief Administrative
Officer shall give notice and an opportunity to
comment in writing to tenants to be affected by
the Chief Administrative Officer's decision. In
establishing or revising the base rent, the Chief
Administrative Officer shall take into consider-
ation the rent charged on the base rent date for
comparable units within the same building; the
rent charged on the base rent date for compa-
rable units in the immediate neighborhood; and
any special or unusual circumstances affecting
the rent charged on the base rent date for the
subject unit.

(e) Any property owner who petitions the
Chief Administrative Officer to establish or re-
vise the base rent and any tenant occup5dng a
unit for which such a petition is brought by the
property owner may appeal the base rent to the
Area Rent Committee. Unless the Area Rent
Committee decides otherwise by a vote of three,
the decision of the Chief Administrative Officer
shall stand.

(f) The provisions of this Section shall apply
in all residential rehabilitation areas designated
by resolution of the Board of Supervisors pursu-
ant to Section 32.43 prior to July 1, 1977.
(Amended by Ord. 269-82, App. 6/10/82)

SEC. 32.73-1. RENT INCREASE
LIMITATIONS FOR AREAS DESIGNATED
ON OR AFTER JULY 1, 1977.

(a) The property owner shall agree that
during the time any conventional RAP loan is
outstanding, rent for a tenant occupying a dwell-
ing unit in the rehabilitated residence shall not
exceed that rent which is allowable under Chap-
ter 37 of the San Francisco Administrative Code.

(b) At the time the RAP loan is recorded,
the Chief Administrative Officer shall notify the
owner and each tenant of the allowable rent
increase based upon the amortized loan. If a
tenant believes that the allowable rent increase
is inaccurate, the tenant may file a complaint

3567

Residential Rehabilitation Loan Program - Terms of
Conventional RAP Loans

Sec. 32.75-1.

with the Chief Administrative Officer within 30
days of notification. The procedures for handhng
the complaint follow:

(1) The Chief Administrative Officer shall
investigate the tenant's complaint and shall ren-
der a decision not more than 30 days after
receiving the complaint;

(2) If the Chief Administrative Officer de-
termines that the complaint is valid, the prop-
erty owner shall reduce the rent in accordance
with this determination and rebate the excess
amount collected within 15 days of notice of the
decision.

(c) The Chief Administrative Officer shall
notify the owner, each tenant and the Rent
Board of the allowable rent increases as estab-
lished in Subsection (a) above. An owner shall
only impose subsequent rent increases in accor-
dance with the provisions set forth in Chapter 37
of the San Francisco Administrative Code.
(Amended by Ord. 112-83, App. 3/11/83)

SEC. 32.74. RENT INCREASE PROTEST
PROCEDURES.

When a tenant believes that the rent for his
or her dwelling unit has been increased above
the amounts allowed under Section 32.73, or
increased in excess of the limitations set forth in
the Rent Ordinance (Chapter 37 of the San
Francisco Administrative Code), the tenant may
petition the Rent Board for a rental arbitration
hearing. (Amended by Ord. 269-82, App. 6/10/82)

SEC. 32.75. SANCTIONS FOR
VIOLATION OF RENT INCREASE
LIMITATIONS.

If a property owner refuses to rebate excess
rent collected in violation of the provisions of
Section 32.73, or fails to comply with the decision
of the Rent Board with respect to a rent increase
or increases for his or her tenants, the Rent
Board shall refer the matter to the Chief Admin-
istrative Officer with a recommendation that the
conventioucd RAP loan agreement be termi-
nated. Upon such recommendation, the Chief
Administrative Officer may terminate the agree-
ment and the unpaid amount of the loan shall

become due and payable immediately. In deter-
mining whether to declare a loan agreement
terminated, the Chief Administrative Officer shall
consider any recommendations of the Citizens
Advisory Committee for the residential rehabili-
tation area where the property subject to the
loan is located. (Amended by Ord. 269-82, App.
6/10/82)

SEC. 32.75-1. EVICTIONS.

Tenants residing in buildings subject to RAP
loans are subject to eviction only in accordance
with Section 37.9 of the San Francisco Adminis-
trative Code. If the property owner evicts, at-
tempts to evict, or threatens to evict tenants
because the tenants are seeking to enforce their
rights under this Chapter, the Chief Administra-
tive Officer may declare the conventional RAP
loan agreement terminated, and the unpaid
amount of the loan shall immediately become
due and paj'^able. In determining whether to
declare a loan agreement terminated, the Chief
Administrative Officer shall consider any recom-
mendations of the Citizens Advisory Committee
for the residential rehabilitation area where the
property subject to the loan is located. (Amended
by Ord. 269-82, App. 6/10/82)

[The next page is 3577]

San Francisco - Administrative Code

[INTENTIONALLY LEFT BLANK]

ARTICLE VIII: HARDSHIP LOANS

Sec. 32.80.

Sec. 32.81.

Sec. 32.82.

Sec. 32.83.

Sec. 32.84.

Sec. 32.85.
Sec. 32.86.
Sec. 32.87.

Use of Hardship Loans.

Maximum Amount of Loan and

Eligibility.

Term of Hardship Loan.

Transferability of Hardship

Loan.

Use in Conjunction with the

Conventional Rehabilitation

Assistance Program Loan.

Security.

Additional Loan Terms.

Source of Funds.

SEC. 32.80. USE OF HARDSHIP LOANS.

Hardship loans are to be used only for meet-
ing rehabilitation standards and incipient viola-
tions thereof. (Amended by Ord. 116-77, App.

4/1/77)

SEC. 32.81. MAXIMUM AMOUNT OF
LOAN AND ELIGIBILITY.

(a) A hardship loan of up to $7,500 can be
made to a low-income applicant who is the owner-
occupant of a one-to-four dwelling unit building.

(b) To be eligible for a hardship loan the
applicant must demonstrate to the satisfaction
of the Chief Administrative Officer that: (1) the
applicant's income does not exceed 80 percent of
the median family income of the San Francisco-
Oakland Standard Metropolitan Statistical Area
as determined by the United States Department
of Housing and Urban Development (HUD); and
(2) that the applicant does not have other assets
to correct housing code violations without jeop-
ardizing the ability to be self supporting.

(c) An applicant whose income exceeds the
standards promulgated by HUD, as described in
Section (b) above, may appeal to the Loan Com-
mittee for approval of a hardship loan when age,
health, physical handicap or size of family re-
quire unusual expenditures by applicant.
(Amended by Ord. 31-81, App. 1/9/81)

SEC. 32.82. TERM OF HARDSHIP LOAN.

A hardship loan shall be due and payable at
the time of sale or transfer of property unless the
hardship loan is transferred pursuant to Section
32.83. (Amended by Ord. 410-77, App. 9/16/77)

SEC. 32.83. TRANSFERABILITY OF
HARDSHIP LOAN.

(a) Upon conveyance of property subject to
a hardship loan, the hardship loan may be con-
verted to a conventional RAP loan and assigned
to the transferee of the property under the same
circumstances and upon the same terms as are
applicable to the transfer of a conventional RAP
loan as provided in Section 32.66. The total
remaining period of the loan may not extend
beyond 20 years from the date of the original
loan.

(b) Upon transfer of property subject to a
hardship loan, or an interest therein, to a spouse
or heir who is otherwise eligible for a hardship
loan, if the spouse or heir so chooses, the hard-
ship loan shall be transferred to the spouse or
heir.

If the owner of property subject to a hardship
loan dies, and the hardship loan is not repaid or
transferred to another person within one year of
the owner's death, the loan shall as of one year
from the date of the owner's death, bear interest
at the then current interest rate charged for
conventional RAP loans which were made in the
same year as the hardship loan. (Added by Ord.
23-74, App. 1/9/74)

SEC. 32.84. USE IN CONJUNCTION
WITH THE CONVENTIONAL
REHABILITATION ASSISTANCE
PROGRAM LOAN.

A conventional rehabilitation assistance loan
may be used to supplement a hardship loan
provided the property owner otherwise qualifies
for a conventional RAP loan. (Added by Ord.
23-74, App. 1/9/74)

3577

Sec. 32.85. San Francisco - Administrative Code 3578

SEC. 32.85. SECURITY.

Unless provided othei'wise in any bond reso-
lution issued pursuant to the provisions of this
Chapter, hardship loans shall be secured by a
deed of trust naming the City and County as
beneficiary of the trust. (Added by Ord. 23-74,
App. 1/9/74)

SEC. 32.86. ADDITIONAL LOAN TERMS.

Each provision required to be contained in a
conventional RAP loan agreement pursuant to
Section 32.69 through 32.75-1 shall also be con-
tained in each hardship loan agreement. (Amended
by Ord. 269-82, App. 6/10/82)

SEC. 32.87. SOURCE OF FUNDS.

Any funds given to received by the City and
County specifically for the purpose of establish-
ing a hardship loan fund may be accepted by the
Chief Administrative Officer and may be ac-
cepted by that purpose. In addition, the Board of
Supervisors may, from time to time, appropriate
funds for a hardship loan fund. (Added by Ord.
23-74, App. 1/9/74)

[The next page is 3587]

ARTICLE IX: MISCELLANEOUS PROVISIONS

Sec. 32.90. Relocation Assistance.

Sec. 32.91. Administration of Relocation

Assistance.
Sec. 32.91-1. Finder's Fee.
Sec. 32.92. Conversion to State or Federal

Program.
Sec. 32.93. Availability of Rehabilitation

Financing in FACE Areas.
Sec. 32.94. Construction and Effect of

Chapter.
Sec. 32.95. SeverabiHty.

SEC. 32.90. RELOCATION ASSISTANCE.

(a) The Chief Administrative Officer shall
by regulation approved by resolution of the Board
of Supervisors establish the conditions of eligi-
bility for relocation benefits and to describe the
various types of benefits available to eligible
persons who are displaced by Rehabilitation As-
sistance Program (RAP) activities and who do
not receive benefits under the Uniform Reloca-
tion Assistance and Real Property Acquisition
Pohcies Act of 1970.

(b) These are the services and assistance
which will, at a minimum, be provided to all
persons or businesses located in a RAP area:

(1) Not less than 90 days prior to displace-
ment, residents of the RAP area shall be in-
formed of the availability of various types of
relocation benefits, the eligibility requirements
for relocation benefits and the procedures for
obtaining relocation benefits.

(2) Current and continuing information on
the availability and cost of comparable housing
and comparable commercial properties and loca-
tions will be maintained and available to the
public at the Central Relocation Services Office.

(3) Information concerning federal and state
housing programs, disaster loan and other pro-
grams administered by the Small Business Ad-
ministration, and other federal or state pro-

grams offering assistance to displaced persons,
will be avaihible at the Central Relocation Ser-
vices Office.

(4) Persons who believe that they have been
discriminated against in the rehousing process
will be referred to the Human Rights Commis-
sion for either action or referral to the appropri-
ate law enforcement agencies. (Added by Ord.
116-77, App. 4/1/77)

SEC. 32.91. ADMINISTRATION OF
RELOCATION ASSISTANCE.

Central Relocation Services shall be respon-
sible for administration of relocation benefits,
including the provisions of general services. (Added
by Ord. 116-77, App. 4/1/77)

SEC. 32.91-1. FINDER'S FEE.

(a) Each, individual or family who is eligible
for replacement housing and who finds his or her
own dwelling unit which is in code compliance
shall be paid a finder's fee of $50.

(b) Those relocated to hotels do not qualify
for finder's fee. (Added by Ord. 462-78, App.
10/13/78)

SEC. 32.92. CONVERSION TO STATE OR
FEDERAL PROGRAM.

In the event that funds for rehabilitation
loans become available through a state or federal
program on more favorable terms than conven-
tional RAP loans, every effort shall be made to
convert to the use of such loans in existing
Residential Rehabilitation Areas. (Added by Ord.
23-74, App. 1/9/74)

SEC. 32.93. AVAILABILITY OF
REHABILITATION FINANCING m FACE
AREAS.

(a) The rehabilitation financing provisions
of the chapter shall be available to complete the
projects in the three existing federally-assisted
code enforcement areas: Bemal Heights, Duboce

3587

Sec. 32.93. San Francisco - Administrative Code 3588

Triangle and Alamo Square. Nothing in this
Chapter shall be construed or applied to prevent
the proceeds of bonds issued pursuant to the
provisions of this Chapter from being used to
finance residential rehabilitation in these three
areas. Financing for residential rehabilitation in
these areas shall be the first priority for use of
the proceeds of such bonds.

(b) The Citizens Advisory Committees pre-
viously established in Bernal Heights, Duboce
Triangle and Alamo Square shall be the Citizens
Advisory Committees required by this Chapter
without regard to Section 32.30.

(c) For the purposes of this Chapter, Bernal
Heights, Duboce Triangle and Alamo Square
shall be deemed designated as Residential Reha-
bilitation Area as of the date on which this
ordinance becomes effective. (Added by Ord. 23-
74, App. 1/9/74)

SEC. 32.94. CONSTRUCTION AND
EFFECT OF CHAPTER.

The provisions of this Chapter, being neces-
sary for the welfare of the City and County of
San Francisco and its inhabitants, shall be lib-
erally construed to effect its purposes. (Added by
Ord. 23-74, App. 1/9/74)

SEC. 32.95. SEVERABILITY.

If any provision of this Chapter, or the appli-
cation thereof to any person or circumstance, is
held invalid, the validity of the remainder of the
chapter and the applicability of such provisions
to other persons and circumstances shall not be
affected thereby (Added by Ord. 23-74, App.
1/9/74)

[The next page is 3597]

CHAPTER 33: COMMISSION ON THE STATUS OF WOMEN

Sec. 33.1. Findings.

Sec. 33.2. Declaration of Policy.

Sec. 33.3. Department, Commission,

Executive Director.
Sec. 33.4. Powers and Duties.

Sec. 33.5. Cooperation with Other Groups

and Individuals.
Sec. 33.6. Reports.

Sec. 33.7. Cooperation of Other City and

County Entities.

SEC. 33.1. FINDINGS.

(a) Because of tradition and prejudice, so-
cial, political, economic, cultural and educational
restrictions on women through the years, women
and girls have been denied by virtue of their
gender, basic human rights resulting in inequi-
ties in economic, political, legal, cultural and
social status. Despite obvious deprivations of
opportunity to attain equality with men, women
have made and continue to make substantial
contributions in diverse areas of human activity
and enterprise. Women have initiated move-
ments for social and political emancipation, hu-
man welfare and world peace. The disadvan-
taged status of women and girls is, however,
inimical to the public welfare in that it prevents
women and girls from fully developing their
individual potentials and from contributing fully
to the cultural and economic life of the commu-
nity. In view of the long tradition of according
women and girls an inferior status in society,
nothing less than a concerted effort at the na-
tional. State and local levels will result in true
equality of the sexes.

(b) Despite remedial legislation and in-
creased public awareness of the disparity in the
treatment of women in our society, women and
girls continue to be treated unequally. Women in
the workforce continue to earn, on average, less
than men. The skills and abilities that women
bring to job fields that have not historically been

open to them remain underutilized. Women con-
tinue to perform only a small percentage of City
contracts. Women continue to constitute a dis-
proportionate percentage of the population earn-
ing the miniiQum wage and/or living in poverty.
In addition, reported cases of violence against
women and girls have risen dramatically. Vio-
lence against women and girls now accounts for
approximately one quarter of assault arrests and
homicides in San Francisco.

(c) There is a continued need for a govern-
mental body to monitor the status of women and
girls, including the status and unique problems
of women and girls of color, homeless women and
girls, immigrant women and girls, lesbians and
low-income women and girls, both within City
and County government and in the private sec-
tor, to monitor complaints about unlawful and
unequal treatment of women, to investigate in-
equalities, and to propose remedies. (Added by
Ord. 28-75, App. 2/11/75; amended by Ord. 271-
89, App. 7/28/89; Ord. 131-98, App. 4/17/98)

SEC. 33.2. DECLARATION OF POLICY.

It is the policy of the City and County of San
Francisco to give every inhabitant of the City
and County, woman or man, girl or boy, equal
economic, political, social and educational oppor-
tunities and to give equal services and protection
by public agencies. It is the policy of the City and
County of San Francisco to keep the public
informed on developments in the legal amd social
status of women and girls; to develop and dis-
tribute pertinent information and recommenda-
tions to the City and County agencies and to the
general public; to provide expert advice and
assistance to the offices, agencies, boards, depart-
ments, and employees of the City and County in
undertaking efforts to assure equality in the
treatment of the sexes; and to officially encour-
age private persons and groups to take steps to
remove the barriers in the struggle of both women
and men for equal opportunities resulting from

3597

Sec. 33.2.

San Francisco - Administrative Code

3598

tradition and prejudice as well as the educa-
tional, economic, political, legal and social restric-
tions of the past. It is the policy of the City and
County of San Francisco that the Mayor, the
Board of Supervisors, and all City and County
commissions, boards and department heads shall
consult with the Commission on matters relating
to gender. (Added by Ord. 28-75, App. 2/11/75;
amended by Ord. 271-89, App. 7/28/89; Ord.
287-96, App. 7/12/96; Ord. 131-98, App. 4/17/98)

SEC. 33.3. DEPARTMENT,
COMMISSION, EXECUTIVE DIRECTOR.

The Department shall be known as the De-
partment on the Status of Women. The Commis-
sion shall formulate, evaluate and approve goals,
objectives, plans and programs, set policies for
the Department and carry out the additional
functions enumerated in the Charter. The Execu-
tive Director shall be the department head and
carry out the functions of department head as
enumerated in Section 4. 126 of the Charter. In
selecting the Commission's staff, the Executive
Director shall consider the diverse makeup of the
general public of San Francisco, including the
racial, ethnic, age and sexual orientation groups
in the City and County. The Executive Director
shall also ensure that staff have demonstrated
commitment and expertise in working on behalf
of women's issues and gender equity. (Amended
by Ord. 363-80, App. 8/7/80; Ord. 271-89, App.
7/28/89; Ord. 131-98, App. 4/17/98; Ord. 106-00,
File No. 000537, App. 5/26/2000)

SEC. 33.4. POWERS AND DUTIES.

The Commission and its Department shall
have the power and the duty to:

(a) Prepare and disseminate educational and
informational material relative to the role that
tradition and prejudice and the deprivation of
equal opportunities in areas such as education
and employment have played in keeping women
and girls of all races, creeds, ages, marital status
and sexual orientation from developing their full
individual potentials and from contributing fully
to the cultural and economic life of the commu-
nity;

(b) Hold public hearings on matters rel-
evant to the general scope of the Commission,
and subpoena records and witnesses in connec-
tion with such hearings;

(c) Review national. State and local legisla-
tion that may have an impact on the status of
women and girls and communicate the
Commission's position regarding the proposed
legislation to the appropriate legislative bodies,
so long as the Commission's position on State
and federal legislation does not conflict with any
official position taken by the City and County;

(d) Analyze the composition of boards and
commissions by gender and advise the Mayor
and the Board of Supervisors on the equity of
appointments. Develop and maintain a Talent
Bank of Women that can be used in a variety of
ways, including but not limited to assisting the
Commission on the Status of Women in nominat-
ing qualified women for appointment by the
Mayor to vacancies on boards and commissions
of the City and County;

(e) Study, make recommendations to and
advocate for the Mayor, the Board of Supervisors
and departments to implement programs that
promote the economic development of women.
The Commission's responsibilities shall include,
but not be limited to:

(1) Advocating the Human Resources De-
partment to develop and implement programs
that assist in recruiting and employing qualified
women applicants for those positions filled through
the Human Resources Department which tradi-
tionally employ few women; making recommen-
dations regarding terminology used in job an-
nouncements, recruitment techniques, job
qualifications, salary schedules, training and
promotional practices,

(2) Studjdng job categories that tradition-
ally are filled primarily by women or primarily
by men to determine whether the rate of com-
pensation in the traditionally female jobs com-
pares reasonably and favorably with the rate of
compensation in the traditionally male jobs, tak-
ing into consideration the training, experience.

3599

Commission on the Status of Women

Sec. 33.4.

mental and physical effort and responsibility
required and the working conditions involved,
and take necessary steps to implement equity,

(3) Stud3dng, developing policies and advo-
cating for the Human Resources Department
and other City departments to implement poli-
cies addressing the special employment prob-
lems of women, including but not limited to the
need for family-friendly policies, flexible work
options, and family care resources,

(4) Studying, developing policies and advo-
cating for the elimination of barriers to employ-
ment and advancement for women, including but
not limited to on-the-job training and retraining
for women who have been out of the employment
market for extended periods due to family re-
sponsibilities and policies and practices address-
ing "glass-ceiling issues."

(5) Advising the Civil Service Commission
and Human Resources Department on the form
of reports regarding City and County employees
and members of boards and commissions regard-
ing sex, race, salary level, job classification and
other disaggregated statistical data, and to de-
velop an analysis of the data in regard to the
areas of concern to the Commission,

(6) Monitoring the reports of complaints of
all forms of discrimination against women (in-
cluding sexual harassment) received and for-
warded by the Department of Human Resources
pursuant to Administrative Code Section 33.7,
and consult with and make recommendations to
the Department of Human Resources concerning
the handling of such complaints,

(7) Assisting in the preparation of training
programs and materials with respect to the eco-
nomic development of and employment discrimi-
nation against women and girls, including sexual
harassment, for City and County departments
and agencies;

(f) Cooperate with and make recommenda-
tions to law enforcement agencies and officials
concerning the treatment of women and girls in
the City and County's correctional and juvenile
justice syste^m and enforcement of laws that have
a particular impact on women and girls, includ-

ing but not limited to laws relating to violence
against women and girls, rape and prostitution;

(g) Cooperate with, make recommendations
to, and advocate for the Communit}'^ College
District and the San Francisco Unified School
District to develop and implement progirams and
practices that have the purpose of furthering the
objectives of this ordinance, including but not
limited to recommendations and advocacy con-
cerning in-sei'vice training, sex-role stereotyping
in textbooks, sexual harassment, violence against
women and girls, courses and methods of provid-
ing role models for female students who may be
interested in areas of employment not tradition-
ally filled by women, and ensuring that women
and girls have equal access to and opportunity in
developing areas of technology;

(h) Provide information, guidance and tech-
nical assistance to other public agencies and
private persons, organizations and institutions
engaged in activities and programs intended to
eliminate prejudice and discrimination against
women and girls because of their gender, and to
serve as liaison between the public and private
sectors on matters affecting women and girls in
the community;

(i) Cooperate with and make written recom-
mendations to the Board of Supervisors, the
Mayor, City and County agencies, boards and
commissions and City and County ofliicials re-
garding the development and implementation of
programs and practices for the purpose of fur-
thering the objectives of this ordinance, includ-
ing but not limited to, recommendations with
respect to improving the City and County's pro-
cedures for enforcing prohibitions against all
forms of discrimination against women and girls,
including sexual harassment, within the City
and County government and with its contrac-
tors;

(j) Investigate and mediate, at the request
of a party and within the limitations of staff time
and resources, any incidents of discrimination
against women because of their status as women
that are not within the exclusive jurisdiction of
some federal or State agency, the Human Re-
sources Department or the Human Rights Com-

Sec. 33.4.

San Francisco - Administrative Code

3600

mission, and make specific recommendations to
the involved parties as to the methods for ehmi-
nating discrimination against women;

(k) Prepare, encourage and coordinate pro-
grams of voluntary action to reduce or eliminate
existing inequalities and disadvantages in both
the public and private sector resulting from
prejudice, tradition and past discrimination
against women and girls;

(1) Coordinate the City's efforts to establish
a comprehensive response to violence against
women and girls in cooperation with City depart-
ments and the community at large. The
Commission's responsibilities shall include, but
not be limited to:

(1) Overseeing and administering funds al-
located to the Commission for programs regard-
ing violence against women and girls;

(2) Receiving reports from all City depart-
ments funding programs regarding violence
against women;

(m) Review the programs and budget of any
other City and County department or agency
where there are reasonable grounds for believing
that department or agency is not compljdng with
this Article or is otherwise not protecting the
rights of women and girls fully; and, if necessary,
to request the Controller to perform a manage-
ment or budget audit with respect to those defi-
ciencies;

(n) Study and monitor all agencies, depart-
ments, boards and commissions of the City and
County to identify patterns and practices that
have a discriminatory effect upon women and
girls;

(o) Carry out the provisions of Section 12K
of the San Francisco Administrative Code imple-
menting, locally, the principles of the United
Nations Convention on the Elimination of All
Forms of Discrimination Against Women
(CEDAW);

(p) Coordinate with other City departments,
policy bodies and community groups to develop
an integrated services plan for women and girls.
(Added by Ord. 28-75, App. 2/11/75; amended by
Ord. 271-89, App. 7/28/89; Ord. 64-92, App. 2/28/
92; Ord. 335-95, App. 10/27/95; Ord. 131-98, App.
4/17/98; Ord. 106-00, File No. 000537, App. 5/26/
2000)

SEC. 33.5. COOPERATION WITH OTHER
GROUPS AND INDIVIDUALS.

The Commission shall consult with and main-
tain contact with groups and individuals who are
concerned with the status of women and girls or
who are primarily responsible for assuring gen-
der equity and women's human rights. (Added by
Ord. 28-75, App. 2/11/75; amended by Ord. 131-
98, App. 4/17/98)

SEC. 33.6. REPORTS.

The Commission shall render written reports
of its activities to the Mayor and the Board of
Supervisors not less than once every six months.
(Added by Ord. 28-75, App. 2/11/75; amended by
Ord. 271-89, App. 7/28/89; Ord. 131-98, App.
4/17/98)

SEC. 33.7. COOPERATION OF OTHER
CITY AND COUNTY ENTITIES.

(a) The Mayor, Board of Supervisors, and
each commission, board, department and agency
of the City and County shall fully cooperate with
the Commission in fulfilling the provisions and
purposes of this Article and shall regularly con-
sult with the Commission on matters relating to
women.

(b) All agencies, departments, boards and
commissions of the City and County, with the
exception of the City Attorney, shall make quar-
terly reports to the Human Resources Depart-
ment regarding all complaints of gender or sex
discrimination file by their employees. Those
reports shall include: (1) the number of com-
plaints filed that quarter; (2) the specific type of
discrimination alleged in each complaint filed;
(3) the department, bureau or division in which
each complaint arose; (4) the harm allegedly
suffered by the complainant; (5) the cost to the
department in handling the matter, when avail-
able; (6) the status of all outstanding complaints,
including, but not limited to a report that the
complaint is being investigated or mediated; (7)
the findings in all completed cases; and (8) what,
if any, corrective action was taken. The Human
Resources Department shall compile the infor-
mation regarding the complaints and report it to
the Commission quarterly. The Human Re-

3601 Commission on the Status of Women Sec. 33.7.

sources Department shall consult with the Com-
mission concerning the policy manner in which
such complaints are handled. The Human Re-
sources Department shall also send the Commis-
sion any and all reports they make to the Board
of Supervisors and/or the Mayor concerning any
type of discrimination against women (including
sexual harassment). The Human Resources De-
partment shall provide the Commission, upon
request, access to pertinent, nonconfidential per-
sonnel information with respect to current City
and County employees and applicants for em-
ployment including, but not limited to: (1) an
employee's or applicant's eligibility or certifica-
tion status; and (2) any workforce utilization or
salary analysis performed by the Human Re-
sources Department.

(c) The City Attorney shall submit to the
Commission a monthly report of settlements,
which includes lawsuits and claims filed by fe-
male employees of the City and County alleging
employment discrimination. The report shall in-
clude: (1) the name of the case or claimant; (2)
the nature of the case; (3) the damages allegedly
sufi*ered; and (4) the amount of the settlement.
The City Attorney shall also provide, quarterly, a
summary of litigation judgments in favor of and
against the City and County, including all law-
suits filed by female employees alleging discrimi-
nation. The City Attorney shall alert the Com-
mission to the filing of any lawsuit against the
City and County alleging any form of discrimi-
nation against women and shall provide a monthly
report of all administrative claims filed against
the City, including any claims alleging discrimi-
nation against women. Upon request, the City
Attorney shall forward to the Commission a copy
of any complaint or claim filed with or served
upon the City Attorney. (Added by Ord. 271-89,
App. 7/28/89; amended by Ord. 64-92, App. 3/28/
92; Ord. 287-96, App. 7/12/96; Ord. 131-98, App.
4/17/98; Ord. 106-00, File No. 000537, App. 5/26/
2000)

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CHAPTER 34: NOTIFICATION TO ASSESSOR CONCERNING
ZONING RECLASSIFICATIONS OF PROPERTY,
CONDITIONAL USE PERMITS AND VARIANCES

Article Page

L NOTIFICATION TO ASSESSOR 3615

IL [RESERVED] 3625

3613

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ARTICLE I: NOTIFICATION TO ASSESSOR

Sec. 34.1. Zoning Reclassification Enacted

by Board of Supervisors.
Sec. 34.2. Conditional Use Authorized by

City Planning Commission.
Sec. 34.3. Conditional Use; Appeal to

Board of Supervisors.
Sec. 34.4. Variance Granted by Zoning

Administrator.
Sec. 34.5. Variance; Appeal to Board of

Appeals.

SEC. 34.1. ZONING RECLASSIFICATION
ENACTED BY BOARD OF SUPERVISORS.

Whenever the Board of Supervisors shall, by
ordinance, enact a zoning reclassification of prop-
erty pursuant to Charter Section 4.105 and the
Planning Code, the Clerk of the Board of Super-
visors shall immediately notify the Assessor of
such action in writing. (Added by Ord. 113-75,
App. 4/4/75; amended by Ord. 254-00, File No.
001548, App. 10/27/2000)

SEC. 34.2. CONDITIONAL USE
AUTHORIZED BY CITY PLANNING
COMMISSION.

Whenever the Planning Commission shall,
by resolution, authorize a conditional use pursu-
ant to the Planning Code, the Zoning Adminis-
trator shall immediately transmit a copy of such
resolution to the Assessor. (Added by Ord. 113-
75, App. 4/4/75; amended by Ord. 254-00, File
No. 001548, App. 10/27/2000)

SEC. 34.3. CONDITIONAL USE; APPEAL
TO BOARD OF SUPERVISORS.

Whenever the Board of Supervisors shall, by
motion, disapprove the decision of the Planning
Commission on appeal and authorize a condi-
tional use, pursuant to Charter Section 4.105
and the Planning Code, the Clerk of the Board of
Supervisors shall immediately notify the Asses-
sor of such action in writing. (Added by Ord.
113-75, App. 4/4/75; amended by Ord. 254-00,
File No. 001548, App. 10/27/2000)

SEC. 34.4. VARIANCE GRANTED BY
ZONING ADMINISTRATOR.

Whenever the Zoning Administrator shall
issue a decision granting a variance pursuant to
Charter Section 4.105 and the Planning Code,
the Zoning Administrator shall immediately trans-
mit a copy of such decision to the Assessor.
(Added by Ord. 113-75, App. 4/4/75; amended by
Ord. 254-00, File No. 001548, App. 10/27/2000)

SEC. 34.5. VARIANCE; APPEAL TO
BOARD OF APPEALS.

Whenever the Board of Appeals shall issue a
decision granting or modifying a variance on
appeal from the Zoning Administrator, pursuant
to Charter Sections 4.105 and 4.106 and the
Planning Code, the Executive Secretary of the
Board of Appeals shall immediately transmit a
copy of such decision to the Assessor. (Added by
Ord. 113-75, App. 4/4/75; amended by Ord. 126-
97, App. 4/9/97; Ord. 254-00, File No. 001548,
App. 10/27/2000)

[The next page is 3625]

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ARTICLE II: [RESERVED]

Sec. 34.6.

(Added by Ord. 113-75, App. 4/4/75; repealed by

Ord. 254-00, File No. 001548, App. 10/27/2000)

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CHAPTER 35: RESIDENTIAL AND INDUSTRIAL COMPATIBILITY AND PROTECTION

Sec. 35.1.
Sec. 35.2.
Sec. 35.3.
Sec. 35.4.
Sec. 35.5.
Sec. 35.6.

Sec. 35.7.

Sec. 35.8.

Short Title.
Declaration of Policy.
Definitions.

Protection of Industrial Uses.
Exemptions and Nonapplication.
Notice Requirements for
Transfer of Real Property for
Residential Use.

Planning Department and
Commission Review of
Residential Projects.
Severability.

SEC. 35.1. SHORT TITLE.

This Chapter may be referred to as the Resi-
dential and Industrial Compatibility and Protec-
tion Ordinance. (Added by Ord. 223-06, File No.
060265, App. 8/11/2006)

SEC. 35.2. DECLARATION OF POLICY.

It shall be the policy of the City and County
of San Francisco to protect its existing and
future industrial businesses from potentially in-
compatible adjacent and nearby development
provided that such industrial businesses are
conducted and maintained in a manner consis-
tent with proper and accepted customs and stan-
dards and in accordance with all applicable fed-
eral, state, and local laws and regulations. The
City and County of San Francisco encourages the
use of best available control technologies and
best management practices whenever possible to
further reduce the potential for incompatibility
with other uses, including residential.

Furthermore, it shall be the policy of the City
and County of San Francisco to protect the
future residents of industrial and mixed-use neigh-
borhoods by providing for a notification process
so that such residents are made aware of some of
the possible consequences of moving to an indus-
trial or mixed use neighborhood and by encour-
aging and, if possible, requiring, features in any

new residential construction designed to pro-
mote the compatibility of residential and adja-
cent or nearby industrial uses. (Added by Ord.
223-06, File No. 060265, App. 8/11/2006)

SEC. 35.3. DEFINITIONS.

For the purposes of this Chapter, the follow-
ing definitions shall apply.

(a) "Adjacent Property" means all real prop-
erty inside or within 150 feet of an Industrial
Use Zoning District.

(b) "Eligible Industrial Use" means any le-
gally existing, including legally non-conforming,
or future Industrial Use, as defined in this Sec-
tion, conducted or maintained for industrial pur-
poses in a manner consistent with proper and
accepted customs and standards, as established
and followed by similar industrial uses in the
same neighborhood if such uses exist, and in
accordance with all applicable federal, state, and
local laws and regulations.

(c) "Industrial Use" means any industrial
use as defined in the Planning Code, including,
but not limited to. Automotive as defined in
Planning Code Section 223, Animal Services as
defined in Planning Code Section 224, ""iVholesal-
ing. Storage, Distribution and Open Air Han-
dling of Materials and Equipment as defined in
Planning Code Section 225, Manufacturing and
Processing as defined in Planning Code Section
226. Other Uses as defined in Planning Code
Section 227, and Light Manufacturing. Whole-
sale Sales, Storage as defined in Planning Code
Section 890.54. Upon adoption of the permanent
Eastern Neighborhoods Zoning Controls. "Indus-
trial Use" shall also include Production, Design,
and Repair Uses ("PDR Uses"), as defined in the
zoning controls, including, but not limited to,
Publishing, Audio/Visual, Arts, Fashion, Trans-
port, Food/Event, Interior Design. Construction,
Equipment, Motor Vehicles, and Other PDR uses.

3635

Supp. No. 1, September 2006

Sec. 35.3.

San Francisco - Administrative Code

3636

(d) "Industrial Use Zoning District" means
a zoning district designated C-M (Heavy Com-
mercial), M-1 (Light Industrial), M-2 (Heavy
Industrial), SPD (South Park), RSD (Residential/
Service Mixed Use), SLR (Service/Light Industrial/
Residential Mixed Use), SLI (Service/Light In-
dustrial), SSO (Service/Secondary Office), or
MB-CI (Mission Bay-Commercial Industrial),
Upon adoption of the permanent Eastern Neigh-
borhoods Zoning Controls, "Industrial Use Zon-
ing District" shall also include a zoning district
within the Eastern Neighborhoods Plan Area in
which PDR is a principally permitted use, includ-
ing, but not limited to, zoning districts desig-
nated PDR Zone, Employment and Business
Development Zone, or Urban Mixed Use Zone.

(e) "Residential Use" means the use of any
real property as a dwelling unit or units, regard-
less of whether it is a primary residence.

(f) "Transfer" means, but is not limited to,
the following: sale or lease. (Added by Ord.
223-06, File No. 060265, App. 8/11/2006)

SEC. 35.4. PROTECTION OF
INDUSTRIAL USES.

No Eligible Industrial Use shall be or become
a public or private nuisance due to any changed
condition in Adjacent Property after the Indus-
trial Use has been in operation for more than two
years if it was not a nuisance at the time it was
estabhshed. (Added by Ord. 223-06, File No.
060265, App. 8/11/2006)

SEC. 35.5. EXEMPTIONS AND
NONAPPLICATION.

(a) The provisions of Section 35.4 shall not
apply whenever a nuisance results from the
negligent, improper, or illegal operation of any
Industrial Use.

(b) This Chapter is not intended to super-
cede or limit any other provisions of the Munici-
pal Code with regard to the regulation and
control of Industrial Uses, including, but not
limited to, Article 11 of the Health and Safety
Code.

(c) This Chapter shall not authorize a change
in use or uses where such is otherwise controlled
or prohibited by the Municipal Code or any state
or federal law.

(d) This Chapter shall not authorize the
continuation or expansion of a nonconforming
use where such is otherwise controlled or prohib-
ited by the Municipal Code. (Added by Ord.
223-06, File No. 060265, App. 8/11/2006)

SEC. 35.6. NOTICE REQUIREMENTS
FOR TRANSFER OF REAL PROPERTY
FOR RESIDENTIAL USE.

(a) Notice Requirement. The transferor
of Adjacent Property for Residential Use must
provide notice to the transferee as follows.

(1) For all transfers of Adjacent Property
having any Residential Use, the transferor shall
provide the disclosure described in Subsection
35.6(a)(2) on a written document. This notice
shall be provided for a lease prior to the tenant(s)
signing a lease or for a purchase agreement for
the transfer of the Adjacent Property at the time
required by California Civil Code Section 1102.3.

(2) Disclosure. The disclosure shall include
a citation to this Section 35.6 and a written
statement containing substantially the following
language in at least 12-point font:

"DISCLOSURE OF ADJACENT INDUSTRIAL

USES

You are purchasing or leasing property
that may be adjacent to an existing indus-
trial use. Industrial uses may subject you
to inconveniences or discomfort arising from
industrial operations, which may include,
but are not limited to: noise, odors, dust,
chemicals, smoke, operation of machinery,
and loading and unloading operations. One
or more of these tj^pes of inconveniences
may occur even if the industrial use is
operating in conformance with existing laws
and regulations and locally accepted cus-
toms and standards for operations of such
use. If you live near industrial uses, you
should be prepared to accept such inconve-
niences or discomfort as normal and a

Supp. No. 1, September 2006

3637

Residential and Industrial Compatibility and Protection

Sec. 35.8.

necessary aspect of living in a neighbor-
hood with mixed industrial and residential
uses. Transferor shall maintain a copy of
this disclosure in the transferor's records
for not less than two years, and a copy shall
be provided to the City or the transferee
upon request."

(b) Affidavit of Disclosure. The transf-
eror shall make and sign, upon penalty of per-
jury, an affidavit stating that the transferor
provided the disclosure required by this Section
and shall attach a copy of the notice actually
provided; provided, however, that the attach-
ment need not also include a copy of the then-
current text of this Chapter. This affidavit, with
the attached notice provided, shall be main-
tained in the transferor's records for not less
than two years, and a copy shall be provided to
the City or the transferee upon request.

(c) Civil Penalty for Failure to Provide
Notice. Any person who fails to provide the
disclosure required by this Section may be liable
for a civil penalty of not less than $500 for each
failure to provide said disclosure. This penalty
may be assessed and recovered in a civil action
brought in the name of the people of the City by
the City Attorney in any court of competent
jurisdiction. The City Attorney also may seek
recovery of the attorneys' fees and costs incurred
in bringing a civil action pursuant to this Sec-
tion.

(d) Private Right of Action. The current
or former transferee of the Adjacent Property
transferred for Residential Use may institute a
civil proceeding for money damages of not less
than $500 for each failure to provide the disclo-
sure required by this Section 35.6, and whatever
other relief the Court deems appropriate. The
prevailing party shall be entitled to reasonable
attorney's fees and costs pursuant to order of the
Court. The remedy available under this subsec-
tion shall be in addition to any other existing
remedies that may be available to the transferee.

(e) This Chapter shall not create any pri-
vate right of action against the City. The City
shall have no duty or liability based on any
failure to achieve the disclosure required by this

Chapter or based on the City's failure to pros-
ecute. (Added by Ord. 223-06, File No. 060265,
App. 8/11/2006)

SEC. 35.7. PLANNING DEPARTMENT
AND COMMISSION REVIEW OF
RESIDENTIAL PROJECTS.

The Planning Department and Commission
shall consider, among other considerations, the
compatibility of uses when approving Residen-
tial Uses adjacent to or near existing Industrial
Uses and to take all reasonably available means
through the City's design review and approval
processes to ensure that the design of such new
residential development projects is sensitive to
both the existing Industrial Uses and the future
residents of the new development. Such consid-
erations may include, among others:

(a) The proposed project's consistency with
the Industrial Area Design Guidelines;

(b) The proposed project's overall design,
acoustical treatment, and ventilation to achieve
interior noise levels and ventilation compatible
with residential standards; and

(c) The location of non-habitable spaces or
spaces such as closets, bathrooms, kitchens, and/or
landscaping so that such spaces may provide a
buffer between the proposed habitable residen-
tial areas and any common property line with
Industrial Uses. (Added by Ord. 223-06, File No.
060265, App. 8/11/2006)

SEC. 35.8. SEVERABILITY.

In the event that a court or agency of compe-
tent jurisdiction holds that a Federal or State
law, rule, or regulation invalidates any clause,
sentence, paragraph, or section of this Chapter
or the application thereof to any person or cir-
cumstances, it is the intent of the Board of
Supervisors that the court or agency sever such
clause, sentence, paragraph, or section so that
the remainder of this ordinance shall remain in
effect. (Added by Ord. 223-06, File No. 060265,
App. 8/11/2006)

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Supp. No. 1, September 2006

CHAPTER 36: COMMUNITY IMPROVEMENTS AREA PLANS AND PROGRAMS

Sec. 36.1. Applicability.

Sec. 36.2. Intent.

Sec. 36.3. Interagency Planning and

Implementation Committees.
Sec. 36.4. Annual Progress Reports.

SEC. 36.1. APPLICABILITY.

(a) The Planning Department is currently
engaged in comprehensive planning of areas of
the City being referred to as the proposed Market/
Octavia, East SOMA, West SOMA, Inner Mis-
sion, Lower Potrero/Showplace Square, and Cen-
tral Waterfront plan areas. These efforts are
expected to lead to new or modified area plans of
the City's General Plan ("Area Plans") that ad-
dress urban design, open space, transportation,
housing, and community facilities and present
detailed rezoning and policy proposals that cover
land use, housing, community facilities, open
space, and transportation. The boundaries of
these areas are generally as outlined in docu-
ments posted from time to time on the Planning
Department's web page.

(b) As part of the comprehensive planning
leading to preparation and adoption of each Area
Plan, the Planning Department, and, in the West
SOMA area, the Planning Department with the
advice and input of the Western SoMa Citizens
Planning Task Force, is analyzing the existing
deficiencies and improvement needs of each area
and the deficiencies and improvement needs that
will be created by or exacerbated by the new
development permitted by the proposed Area
Plan. In the other areas covered by this legisla-
tion, the Planning Department should also con-
sider the advice and input of citizen groups,
Based on this analysis, the Planning Depart-
ment shall prepare for each area a document
that identifies the various facilities, infrastruc-
ture and other community improvements needed
to address the identified conditions and needs
(the "Community Improvements Plan") and an
implementation program that summarizes the

estimated costs of the various facilities and im-
provements identified in the Community Improve-
ments Plan, proposes specific funding strategies
and sources to finance them, identifies the re-
sponsible and supporting agencies, and outlines
the steps, including as may be needed more
detailed planning, program design, and environ-
mental evaluation, required to refine the propos-
als and implement them (the "Implementation
Program."). In the West SOMA area the City is
preparing the Community Improvements Plan
and Implementation Program with the advice
and in put of the Western SoMa Citizens Plan-
ning Task Force. In the other areas covered by
this legislation, the Planning Department should
also consider the advice and input of citizen
groups. The funding sources proposed in the
Implementation Program may include, but are
not limited to, use of federal, State, and local
public resources, coramunity facility, community
benefit or other forms of assessment districts,
and area-specific development impact fees, as
may be detailed in the final adopted respective
area plans. (Added by Ord. 265-06, File No.
061206, App. 10/27/2006)

SEC. 36.2. INTENT.

This Article 36 is intended to provide mecha-
nisms that will enhance the participation in the
preparation and implementation of the Commu-
nity Improvements Plans and Implementation
Programs by the various City departments, of-
fices; and agencies that will be responsible for
their implementation and provide a imeans by
which the various parties interested in realiza-
tion of the Community Improvements Plans and
Implementation Programs can remain informed
about and provide input to and support for their
implementation. (Added by Ord. 265-06, File No.
061206, App. 10/27/2006)

SEC. 36.3. INTERAGENCY PLANNING
AND IMPLEMENTATION COMMITTEES.

For each area subject to the provisions of this
Ai'ticle, there shall be an Interagency Planning

3645

Supp. No. 2, October 2006

Sec. 36.3.

San Francisco - Administrative Code

3646

and Implementation Committee that shall be
comprised of representatives of the departments,
offices, and agencies whose responsibilities in-
clude provision of one of more of the community
improvements that are likely to be needed or
desired in a Plan Area. In addition to the Plan-
ning Department, these departments, offices,
and agencies shall, if relevant, include, but are
not limited to, the County Transportation Author-
ity, Municipal Transportation Agency, Depart-
ment of Public Works, Library Commission, Re-
development Agency, Mayor's Office of Economic
and Workforce Development, Mayor's Office of
Community Development, Public Utilities Com-
mission, Department of Recreation and Parks,
Department of the Environment, and the Office
of City Greening. The Interagency Planning and
Implementation Committees shall be chaired by
the Planning Director or his or her designee. It
shall be the responsibility of each such depart-
ment, office, or agency to participate, using its
own administrative funds, in the preparation of
that portion of a Community Improvements Plan
falling within its area of responsibility and, after
Area Plan adoption, to participate in the detailed
design of the community improvement or im-
provements and to seek the funding for its imple-
mentation as provided in the Implementation
Program, as amended from time to time. (Added
by Ord. 265-06, File No. 061206, App. 10/27/
2006)

SEC. 36.4. ANNUAL PROGRESS
REPORTS.

(a) Preparation, After the final adoption
of an Area Plan, including the Community Im-
provements Plan and Implementation Program,
for a portion of the City subject to the provisions
of this Article, the Planning Department shall
prepare for each Area Plan a brief Annual Progress
Report indicating the status of implementation
of the Area Plan and its various components. It
shall contain information regarding the progress
made to date in implementing the Area Plan and
its various components, including a summary of
the individual development projects, public and
private, that have been approved during the
report period, and shall also describe the steps

taken regarding implementation of the various
community improvements in accordance with
the Plan's projected phasing and update and, if
necessary, modify and amend, the contents and/or
phasing of the Community Improvements Plan
and Implementation Program. It shall also in-
clude proposed departmental work programs and
budgets for the coming fiscal year that describe
the steps to be taken by each responsible depart-
ment, office, or agency to implement the Com-
munity Improvements Plan. It shall be the re-
sponsibility of each department, office and agency
to provide to the Planning Department the fol-
lowing: (i) information regarding its progress in
implementing the community improvement(s)
for which it is responsible; (ii) any changes in the
time-phased schedule for implementing the im-
provement(s); and (iii) information regarding its
relevant proposed work program and efforts to
secure the funding sources for implementing the
improvement(s) in the coming year. The Plan-
ning Department shall summarize this informa-
tion together with information regarding it's own
progress and relevant proposed work program
and budget into the Annual Progress Report.

(b) Annual Hearing at Planning Com-
mission. Prior to the annual submission of the
Planning Department budget requests to the
Mayor's Budget Office, the Planning Commis-
sion shall hold a public hearing on each Area
Plan's Annual Progress Report. Notice of the
hearing shall be provided at least 30 days prior
to the meeting as follows: mailed notice to all
organizations and individuals who have specifi-
cally requested mailed notice and published no-
tice at least once in an official newspaper of
general circulation. The Report shall be posted
on the Department's web page for at least 30
days before the hearing. This hearing may be
held as part of the Planning Commission's hear-
ing on the Departmental budget request.

(c) Submission to Relevant Committee
of the Board of Supervisors. The Annual
Progress Report shall also be submitted to the
committee of the Board of Supervisors respon-
sible for land use matters, which Committee may
schedule a public hearing. Further, the Board
urges the Planning Department Director and/or

Supp. No. 2, October 2006

3647 Sec. 36.4.

his or her designee who chairs the Interagency
Planning and Implementation Committee for
each Area Plan to be available to provide a
briefing and answer questions about the Report
at the appropriate Board of Supervisors commit-
tee hearing.

(d) Termination. This Annual Progress Re-
port requirement may be terminated by the
Planning Commission upon its determination
after a public hearing, noticed at least 30 days
prior to the meeting, that full implementation of
the Community Improvements Plan and Imple-
mentation Program has been substantially
achieved and that continuation of the Annual
Progress Report requirement would serve no
useful purpose. (Added by Ord. 265-06, File No.
061206, App. 10/27/2006)

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Supp. No. 2, October 2006

CHAPTER 37: RESIDENTIAL RENT STABILIZATION AND ARBITRATION ORDINANCE

Sec. 37.1. Title and Findings.

Sec. 37.2. Definitions.

Sec. 37.3. Rent Limitations.

Sec. 37.4. Establishment; Appointment;

Terms; Executive Director;
Funding; Compensation.

Sec. 37.5. Meetings of the Board.

Sec. 37.6. Powers and Duties.

Sec. 37.7. Certification of Rent Increases

for Capital Improvements,
Rehabilitation Work, Energy
Conservation Improvements,
and Renewable Energy
Improvements.

Sec. 37.8. Arbitration of Rental Increase

Adjustments.

Sec. 37. 8A. Expedited Hearing Procedures.

Sec. 37. 8B. Expedited Hearing and Appeal
Procedures for Capital
Improvements Resulting from
Seismic Work on Unreinforced
Masonry Buildings Pursuant to
Building Code Chapters 16B
and 16C Where Landlords
Performed the Work with a
UMB Bond Loan.

Sec. 37.8C. Temporary Moratorium on Rent
Board Processing or Approval of
Landlord Petitions for
Certification and Passthrough of
Non-Seismic Capital
Improvement, Rehabilitation
and Energy Conservation Costs
to Tenants, During Pendency of
the Superior Court Preliminary
Injunction Sta5ring
Implementation of November
2000 Proposition H.

Sec. 37.9. Evictions.

Sec. 37. 9A. Tenant Rights in Certain

Displacements Under Section
37.9(a)(13).

Sec.

37.9B.

Tenant Rights in Evictions
Under Section 37.9(a)(8).

Sec.

37.9C.

Tenants Rights to Relocation for
No-Fault Evictions.

Sec.

37.10A.

Misdemeanors, and Other
Enforcement Provisions.

Sec.

37.11A.

Civil Actions.

Sec.

37.12.

Transitional Provisions.

Sec.

37.13.

Keys.

Sec.

37.14A.

Hearings and Remedies for
Violation of Residential Hotel
Visitor Policies.

Sec.

37.14B.

Hearing, Residential Hotel Mail
Receptacles.

Sec.

37.15.

Severability.

Editor's Note:

This Chapter includes only Sections 37.3(a)(6) and
37.3(b)(2) of Proposition H which was approved by the
voters on November 7, 2000. On August 10, 2001 , the
San Francisco Superior Court permanently enjoined
the enforcement of Proposition H with the exception of
Sections 37.3(a)(6) and 37.3(b)(2), which were not
challenged. The text of Proposition H, which limits the
types of costs on which a landlord may base a rent
increase, can be found in Appendix 50 of this Code.

SEC. 37.1. TITLE AND FINDINGS.

(a) The Chapter shall be known as the Resi-
dential Rent Stabilization and Arbitration Ordi-
nance.

(b) The Board of Supervisors hereby finds:

(1) There is a shortage of decent, safe and
sanitary housing in the City and County of San
Francisco resulting in a critically low vacancy
factor.

(2) Tenants displaced as a result of their
inability to pay increased rents must relocate
but as a result of such housing shortage are
unable to find decent, safe and sanitary housing
at affordable rent levels. Aware of the difficulty
in finding decent housing, some tenants attempt

3655

Supp. No. 4, January 2007

Sec. 37.1.

San Francisco - Administrative Code

3656

to pay requested rent increases, but as a conse-
quence must expend less on other necessities of
life.

This situation has had a detrimental effect
on substantial numbers of renters in the City
and County, especially creating hardships on
senior citizens, persons on fixed incomes and low
and moderate income households.

(3) The problem of rent increases reached
crisis level in the Spring of 1979. At that time the
Board of Supervisors conducted hearings and
caused studies to be made on the feasibility and
desirability of various measures designed to ad-
dress the problems created by the housing short-
age.

(4) In April, 1979, pending development and
adoption of measures designed to alleviate the
City and County's housing crisis, the Board of
Supervisors adopted Ordinance No. 181-79, pro-
hibiting most rent increases on residential rental
properties for 60 days. Ordinance No. 181-79 is
scheduled to expire no later than June 30, 1979.

(5) The provisions of Ordinance No. 181-79
have successfully reduced the rate of rent in-
creases in the City and County, along with the
concomitant hardships and displacements. How-
ever, a housing shortage still exists within the
City and County of San Francisco and total
deregulation of rents at this time would imme-
diately lead to widespread exorbitant rent in-
creases and recurrence of the crisis, problems
and hardships which existed prior to the adop-
tion of the moratorium measures.

(6) This ordinance shall be in effect for 15
months. During this time, a Citizens' Housing
Task Force shall be created to conduct a further
study of and make recommendations for, the
problems of housing in San Francisco. In the
interim, some immediate measures are needed
to alleviate San Francisco's housing problems.
This ordinance, therefore, creates a Residential
Rent Stabilization and Arbitration Board in or-
der to safeguard tenants from excessive rent
increases and, at the same time, to assure land-
lords fair and adequate rents consistent with
Federal Anti-Inflation Guidelines.

(1) Present law provides that the annual
allowable rent increase shall be 60 percent of the
Consumer Price Index but in no event less than
four percent of the tenant's base rent.

(2) Rent increases of 60 percent of the Con-
sumer Price Index are sufficient to assure land-
lords fair and adequate rents consistent with
Federal Anti-Inflation Guidelines.

(3) Since 1984, 60 percent of the Consumer
Price Index has been less than four percent per
year, so landlords have been able to impose
yearly rent increases above the rate of inflation
since 1984.

(4) Under the current four percent floor,
landlords have received more than 60 percent of
the Consumer Price Index with resulting hard-
ship to tenants.

(5) Therefore, in order to alleviate this hard-
ship to tenants and to ensure that landlords
receive fair and adequate rents consistent with
Federal Anti-Inflation Guidelines, we hereby
amend this ordinance to delete the current four
percent floor on annual rent increases. (Added by
Ord. 276-79, App. 6/12/79)

SEC. 37.2. DEFINITIONS.

(a) Base Rent.

(1) That rent which is charged a tenant
upon initial occupancy plus any rent increase
allowable and imposed under this Chapter; pro-
vided, however, that base rent shall not include
increases imposed pursuant to Section 37.7, and
base rent shall not include utility passthroughs
or water revenue bond passthroughs or general
obligation bond passthroughs pursuant to Sec-
tions 37.2(q), 37.3(a)(5)(B), and 37.3(a)(6). Base
rent for tenants of RAP rental units in areas
designated on or after July 1, 1977, shall be that
rent which was established pursuant to Section
32.73-1 of the San Francisco Administrative Code.
Rent increases attributable to the City
Administrator's amortization of an RAP loan in
an area designated on or after July 1, 1977, shall
not be included in the base rent.

Supp. No. 4, January 2007

3657

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.2.

(2) From and after the effective date of this
ordinance, the base rent for tenants occup3dng
rental units which have received certain tenant-
based or project-based rental assistance shall be
as follows:

(A) With respect to tenant-based rental as-
sistance:

(i) For any tenant receiving tenant-based
assistance as of the effective date of this ordi-
nance (except where the rent payable by the
tenant is a fixed percentage of the tenant's
income, such as in the Section 8 certificate pro-
gram and the rental subsidy program for the
HOPWA program), and continuing to receive
tenant-based rental assistance following the ef-
fective date of this ordinance, the base rent for
each unit occupied by such tenant shall be the
rent payable for that unit under the Housing
Assistance Payments contract, as amended, be-
tween the San Francisco Housing Authority and
the landlord (the "HAP contract") with respect to
that unit immediately prior to the effective date
of this ordinance (the "HAP" contract rent").

(ii) For any tenant receiving tenant-based
rental assistance (except where the rent payable
by the tenant is a fixed percentage of the tenant's
income, such as in the Section 8 certificate pro-
gram and the rental subsidy program for the
HOPWA program), and commencing occupancy
of a rental unit following the effective date of this
ordinance, the base rent for each unit occupied
by such a tenant shall be the HAP contract rent
in effect as of the date the tenant commences
occupancy of such unit.

(iii) For any tenant whose tenant-based
rental assistance terminates or expires, for what-
ever reason, following the effective date of this
ordinance, the base rent for each such unit
following expiration or termination shall be the
HAP contract rent in effect for that unit imme-
diately prior to the expiration or termination of
the tenant-based rental assistance.

(B) For any tenant occupying a unit upon
the expiration or termination, for whatever rea-
son, of a project-based HAP contract under Sec-
tion 8 of the United States Housing Act of 1937
(42 use Section 1437f, as amended), the base

rent for each such unit following expiration or
termination shall be the "contract rent" in effect
for that unit immediately prior to the expiration
or termination of the project-based HAP con-
tract.

(C) For any tenant occupying a unit upon
the prepayment or expiration of any mortgage
insured by the United States Department of
Housing and Urban Development ("HUD"), in-
cluding but not limited to mortgages provided
under Sections 221(d)(3), 221(d)(4) and 236 of
the National Housing Act (12 USC Section 1715z-
1), the base rent for each such unit shall be the
"basic rental charge" (described in 12 USC 1715z-
1(f), or successor legislation) in effect for that
unit immediately prior to the prepayment of the
mortgage, which charge excludes the "interest
reduction payment" attributable to that unit
prior to the mortgage prepayment or expiration.

(b) Board. The Residential Rent Stabiliza-
tion and Arbitration Board.

(c) Capital Improvements. Those improve-
ments which materially add to the value of the
property, appreciably prolong its useful life, or
adapt it to new uses, and which may be amor-
tized over the useful life of the improvement of
the building.

(d) CPI. Consumer Price Index for all Ur-
ban Consumers for the San Francisco-Oakland
Metropolitan Area, U.S. Department of Labor.

(e) Energy Conservation Improvements.

Work performed pursuant to the requirements of
Chapter 12 of the San Francisco Housing Code.

(f) Administrative Law Judge. A person,
designated by the Board, who arbitrates and
mediates rental increase disputes, and performs
other duties as required pursuant to this Chap-
ter 37.

(g) Housing Services. Services provided
by the landlord connected with the use or occu-
pancy of a rental unit including, but not limited
to: repairs; replacement; maintenance; painting;
light; heat; water; elevator service; laundry fa-
cilities and privileges; janitor service; refuse re-
moval; furnishings; telephone; parking; rights
permitted the tenant by agreement, including
the right to have a specific number of occupants,

Supp. No. 4, January 2007

Sec. 37.2.

San Francisco - Administrative Code

3658

whether express or impUed, and whether or not
the agreement prohibits subletting and/or assign-
ment; and any other benefits, privileges or facili-
ties.

(h) Landlord. An owner, lessor, sublessor,
who receives or is entitled to receive rent for the
use and occupancy of any residential rental unit
or portion thereof in the City and County of San
Francisco, and the agent, representative or suc-
cessor of any of the foregoing.

(i) Member. A member of the Residential
Rent Stabilization and Arbitration Board.

(j) Over FMR Tenancy Program. A regu-
lar certificate tenancy program whereby the base
rent, together with a utility allowance in an
amount determined by HUD, exceeds the fair
market rent limitation for a particular unit size
as determined by HUD.

(k) Payment Standard. An amount deter-
mined by the San Francisco Housing Authority
that is used to determine the amount of assis-
tance paid by the San Francisco Housing Author-
ity on behalf of a tenant under the Section 8
Voucher Program (24 CFR Part 887).

(1) RAP. Residential Rehabilitation Loan Pro-
gram (Chapter 32, San Francisco Administrative
Code).

(m) RAP Rental Units. Residential dwell-
ing units subject to RAP loans pursuant to Chap-
ter 32, San Francisco Administrative Code.

(n) Real Estate Department. A city de-
partment in the City and County of San Fran-
cisco.

(o) Rehabilitation Work. Any rehabilita-
tion or repair work done by the landlord with
regard to a rental unit, or to the common areas of
the structure containing the rental unit, which
work was done in order to be in compliance with
State or local law, or was done to repair damage
resulting from fire, earthquake or other casualty
or natural disaster.

(p) Rent. The consideration, including any
bonus, benefits or gratuity, demanded or re-
ceived by a landlord for or in connection with the
use or occupancy of a rental unit, or the assign-
ment of a lease for such a unit, including but not

limited to monies demanded or paid for parking,
furnishing, food service, housing services of any
kind, or subletting.

(q) Rent Increases. Any additional monies
demanded or paid for rent as defined in item (p)
above, or any reduction in housing services with-
out a corresponding reduction in the monies
demanded or paid for rent; provided, however,
that: (1) where the landlord has been pajdng the
tenant's utilities and the cost of those utilities
increases, the landlord's passing through to the
tenant of such increased costs pursuant to this
Chapter does not constitute a rent increase; (2)
where there has been a change in the landlord's
property tax attributable to a general obligation
bond approved by the voters between November
1, 1996 and November 30, 1998, or after Novem-
ber 14, 2002, the landlord's passing through to
the tenant of such increased costs in accordance
with this Chapter (see Section 37.3(a)(6)) does
not constitute a rent increase; (3) where there
has been a change in the landlord's property tax
attributable to a San Francisco Unified School
District or San Francisco Community College
District general obligation bond approved by the
voters after November 1, 2006, the landlord's
passing through to the tenant of such increased
costs in accordance with this Chapter (see Sec-
tion 37.3(a)(6)) does not constitute a rent in-
crease; and, (4) where water bill charges are
attributable to water rate increases resulting
from issuance of water revenue bonds authorized
at the November 5, 2002 election, the landlord's
passing through to the tenant of such increased
costs in accordance with this Chapter (see Sec-
tion 37.3(a)(5)(B)) does not constitute a rent
increase.

(r) Rental Units. All residential dwelling
units in the City and County of San Francisco
together with the land and appurtenant build-
ings thereto, and all housing services, privileges,
furnishings and facilities supplied in connection
with the use or occupancy thereof, including
garage and parking facilities.

Garage facilities, parking facilities, drive-
ways, storage spaces, laundry rooms, decks, pa-
tios, or gardens on the same lot, or kitchen

Supp. No. 4, January 2007

3659

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.2.

facilities or lobbies in single room occupancy
(SRO) hotels, supplied in connection with the use
or occupancy of a unit, may not be severed from
the tenancy by the landlord without just cause as
required by Section 37.9(a). Any severance, re-
duction or removal permitted under this Section
37.2(r) shall be offset by a corresponding reduc-
tion in rent. Either a landlord or a tenant may
file a petition with the Rent Board to determine
the amount of the rent reduction.

The term "rental units" shall not include:

(1) Housing accommodations in hotels, mo-
tels, inns, tourist houses, rooming and boarding
houses, provided that at such time as an accom-
modation has been occupied by a tenant for 32
continuous days or more, such accommodation
shall become a rental unit subject to the provi-
sions of this Chapter; provided further, no land-
lord shall bring an action to recover possession of
such unit in order to avoid having the unit come
within the provisions of this Chapter. An eviction
for a purpose not permitted under Section 37.9(a)
shall be deemed to be an action to recover pos-
session in order to avoid having a unit come
within the provisions of this Chapter;

(2) Dwelling units in nonprofit cooperatives
owned, occupied and controlled by a majority of
the residents or dwelling units solely owned by a
nonprofit public benefit corporation governed by
a board of directors the majority of which are
residents of the dwelling units and where it is
required in the corporate by-laws that rent in-
creases be approved by a majority of the resi-
dents;

(3) Housing accommodation in any hospi-
tal, convent, monastery, extended care facility,
asylum, residential care or adult day health care
facility for the elderly which must be operated
pursuant to a license issued by the California
Department of Social Services, as required by
California Health and Safety Chapters 3.2 and
3.3; or in dormitories owned and operated by an
institution of higher education, a high school, or
an elementary school;

(4) Except as provided in Subsections (A),
(B) and (C), dwelling units whose rents are
controlled or regulated by any government unit,

agency or authorit}^, excepting those unsubsi-
dized and/or unassisted units which are insured
by the United States Department of Housing and
Urban Development; provided, however, that units
in unreinforced masonry buildings which have
undergone seismic strengthening in accordance
with Building Code Chapters 16B and 16C shall
remain subject to the Rent Ordinances to the
extent that the ordinance is not in conflict with
the seismic strengthening bond program or with
the program's loan agreements or with any regu-
lations promulgated thereunder;

(A) For purposes of Sections 37.2,
37.3(a)(10)(A), 37.4, 37.5, 37.6, 37.9, 37.9A, 37.10A,
37.11Aand 37.13, and the arbitration provisions
of Sections 37.8 and 37. 8A applicable only to the
provisions of Sections 37.3(a)(10)(A), the term
"rental units" shall include units occupied by
recipients of tenant-based rental assistance where
the tenant-based rental assistance pro^p-am does
not establish the tenant's share of base rent as a
fixed percentage of a tenant's income, such as in
the Section 8 voucher program and the "Over-
FMR Tenancy" program defined in 24 CFR Sec-
tion 982.4;

(B) For purposes of Sections 37.2,
37.3(a)(10)(B), 37.4, 37.5, 37.6, 37.9, 37.9A, 37.10A,
37.11A and 37.13, the term "rental units" shall
include units occupied by recipients of tenant-
based rental assistance where the rent payable
by the tenant under the tenant-based rental
assistance program is a fixed percentage of the
tenant's income; such as in the Section 8 certifi-
cate program, and the rental subsidy program for
the Housing Opportunities for Persons with Aids
("HOPWA") program (42 U.S.C. Section 12901 et
seq., as amended);

(C) The term "rental units" shall include
units in a building for which tax credits are
reserved or obtained pursuant to the federal low
income housing tax credit program (LIHTC, Sec-
tion 42 of the Internal Revenue Code, 26 U.S.C.
Section 42), that satisfy the following criteria:

(i) Where a tenant's occupancy of the unit
began before the applicable LIHTC regulatory
agreement was recorded; and,

Supp. No. 9, June 2007

Sec. 37.2.

San Francisco - Administrative Code

3660

(ii) Where the rent is not controlled or regu-
lated by any use restrictions imposed by the City
and County of San Francisco, the San Francisco
Redevelopment Agency, the State of California
Office of Housing and Community Development,
or the United States Department of Housing and
Urban Development.

Nothing in this Section 37.2(r)(4)(C) pre-
cludes a landlord from seeking an exemption on
the basis of substantial rehabilitation under Sec-
tion 37.2(r)(6).

This Section 37.2(r)(4)(C) definition of "rental
unit" shall apply to any unit where the qualify-
ing tenant (see Section 37.2(r)(4)(C)(i)) is in
possession of the unit on or after the effective
date of this ordinance (Ord. No. 281-06), includ-
ing but not limited to any unit where the tenant
has been served with a notice to quit but has not
vacated the unit and there is no final judgment
against the tenant for possession of the unit as of
the effective date of this ordinance (Ord. No.
281-06).

(5) Rental units located in a structure for
which a certificate of occupancy was first issued
after the effective date of this ordinance; (A)
except as provided for certain categories of units
and dwellings by Section 37.3(d) and Section
37.9A(b) of this Chapter, and (B) except as pro-
vided in a development agreement entered into
by the City under San Francisco Administrative
Code Chapter 56.

(6) Dwelling units in a building which has
undergone substantial rehabilitation after the
effective date of this ordinance; provided, how-
ever, that RAP rental units are not subject to this
exemption.

(7) Dwellings or units otherwise subject to
this Chapter 37, to the extent such dwellings or
units are partially or wholly exempted from rent
increase limitations by the Costa-Hawkins Rental
Housing Act (California Civil Code Sections
1954.50, et seq.) and/or San Francisco Adminis-
trative Code Section 37.3(d).

(s) Substantial Rehabilitation. The reno-
vation, alteration or remodeling of residential
units of 50 or more years of age which have been
condemned or which do not qualify for certifi-

cates of occupancy or which require substantial
renovation in order to conform the building to
contemporary standards for decent, safe and
sanitary housing. Substantial rehabilitation may
vary in degree from gutting and extensive recon-
struction to extensive improvements that cure
substantial deferred maintenance. Cosmetic im-
provements alone such as painting, decorating
and minor repairs, or other work which can be
performed safely without having the unit va-
cated do not qualify as substantial rehabilita-
tion.

(t) Tenant. A person entitled by written or
oral agreement, sub-tenancy approved by the
landlord, or by sufferance, to occupy a residential
dwelling unit to the exclusion of others.

(u) Tenant-Based Rental Assistance.
Rental assistance provided directly to a tenant
or directly to a landlord on behalf of a particular
tenant, which includes but shall not be limited to
certificates and vouchers issued pursuant to Sec-
tion 8 of the United States Housing Act of 1937,
as amended (42 U.S.C. Section 1437f) and the
HOPWA program.

(v) Utilities. The term "utilities" shall refer
to gas and electricity exclusively. (Amended by
Ord. 193-86, App. 5/30/86; Ord. 221-92, App.
7/14/92; Ord. 233-93, App. 7/22/93; Proposition I,
11/8/94; Ord. 446-94, App. 12/30/94; Ord. 179-98,
App. 5/29/98; Ord. 250-98, App. 7/31/98; Ord.
237-99, File No. 990168, App. 8/30/99; Ord. 347-
99, File No. 992197, App. 12/30/99; Ord. 116-00,
File No. 991315, App. 6/2/2000; Ord. 2-03, File
No. 020716, App, 1/21/2003; Ord. 107-03, File
No. 030689, App. 5/23/2003; Ord. 178-06, File
No. 052025, App.; Ord. 252-06, File No. 061183,
App. 10/11/2006; Ord. 281-06, File No. 061376,
App. 11/20/2006; Ord. 92-07, File No. 061217,
App. 4/27/2007)

SEC. 37.3. RENT LIMITATIONS.

(a) Rent Increase Limitations for Ten-
ants in Occupancy. Landlords may impose
rent increases upon tenants in occupancy only as
provided below and as provided by Subsection
37.3(d):

(1) Annual Rent Increase. On March 1st
of each year, the Board shall publish the increase
in the CPI for the preceding 12 months, as made

Supp. No. 9, June 2007

3660.1 Residential Rent Stabilization and Arbitration Ordinance Sec. 37.3.

available by the U.S. Department of Labor, A
landlord may impose annually a rent increase
which does not exceed a tenant's base rent by
more than 60 percent of said published increase.
In no event,, however, shall the allowable annual
increase be greater than seven percent.

(2) Banking. A landlord who refrains from
imposing an annual rent increase or any portion
thereof may accumulate said increase and im-
pose that amount on the tenant's subsequent
rent increase anniversary dates. A landlord who,
between April 1, 1982, and February 29, 1984,
has banked an annual seven percent rent in-
crease (or rent increases) or any portion thereof
may impose the accumulated increase on the
tenant's subsequent rent increase anniversary
dates.

(3) Capital Improvements, Rehabilita-
tion, and Energy Conservation Improve-
ments, and Renewable Energy Improve-
ments. A landlord may impose rent increases
based upon the cost of capital improvements,
rehabilitation, energy conservation improve-
ments, or renewable energy improvements, pro-
vided that such costs are certified pursuant to
Sections 37.7 and 37. 8B below; provided further
that where a landlord has performed seismic
strengthening in accordance with Building Code
Chapters 16B and 16C, no increase for capital
improvements (including but not limited to seis-
mic strengthening) shall exceed, in any 12 month
period, 10 percent of the tenant's base rent,
subject to rules adopted by the Board to prevent
landlord hardship and to permit landlords to
continue to maintain their buildings in a decent,
safe and sanitary condition. A landlord may
accumulate any certified increase which exceeds
this amount and impose the increase in subse-

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Supp. No. 9, June 2007

3661

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Sec. 37.3.

quent years, subject to the 10 percent limitation.
Nothing in this subsection shall be construed to
supersede £iny Board rules or regulations with
respect to limitations on increases based upon
capital improvements whether performed sepa-
rately or in conjunction with seismic strengthen-
ing improvements pursuant to Building Code
Chapters 16B and 16C.

(4) Utilities. A landlord may impose in-
creases based upon the cost of utilities as pro-
vided in Section 37.2(q) above.

(5) Water: Charges Related to Excess Wa-
ter Use, and 50% Passthrough of Water Bill
Charges Attributable to Water Rate Increases
Resulting From Issuance of Water System Im-
provement Revenue Bonds Authorized at the
November 2002 Election.

(A) Charges Related to Excess Water

Use. A landlord may impose increases not to
exceed 50 percent of the excess use charges
(penalties) levied by the San Francisco Water
Department on a building for use of water in
excess of Water Department allocations under
the following conditions:

(i) The landlord provides tenants with writ-
ten certification that the following have been
installed in all units: (1) permanently installed
retrofit devices designed to reduce the amount of
water used per flush or low-flow toilets (1.6
gallons per flush); (2) low-flow showerheads which
allow a flow of no more than 2.5 gallons per
minute; and (3) faucet aerators (where installa-
tion on current faucets is physically feasible);
and

(ii) The landlord provides the tenants with
written certification that no known plumbing
leaks currently exist in the building and that any
leaks reported by tenants in the future will be
promptly repaired; and

(iii) The landlord provides the tenants with
a copy of the water bill for the period in which
the penalty was charged. Only penalties billed
for a service period which begins after the effec-
tive date of the ordinance [April 20, 1991] may be
passed through to tenants. Where penalties re-
sult from an allocation which does not reflect
documented changes in occupancy which oc-

curred after March 1, 1991, a landlord must, if
requested in writing by a tenant, make a good-
faith effort to appeal the allotment. Increases
based upon penalties shall be prorated on a
per-room basis provided that the tenancy existed
during the time the penalty charges accrued.
Such charges shall not become part of a tenant's
base rent. Where a penalty in any given billing
period reflects a 25 percent or more increase in
consumption over the prior billing period, and
where that increase does not appear to result
from increased occupancy or any other known
use, a landlord may not impose any increase
based upon such penalty unless inspection by a
licensed plumber or Water Department inspector
fails to reveal a plumbing or other leak. If the
inspection does reveal a leak, no increase based
upon penalties may be imposed at anj/^ time for
the period of the unrepaired leak.

(B) Fifty Percent (50%) Passthrough of
Water Bill Charges Attributable to Water
Increases Resulting From Issuance of Wa-
ter System Improvement Revenue Bonds
Authorized at the November 2002 Election.
A landlord may pass through fifty percent (50%)
of the water bill charges attributable to water
rate increases resulting from issuance of Water
System Improvement Revenue Bonds authorized
at the November 2002 election (Proposition A), to
any unit that is in compliance with any appli-
cable laws requiring water conservation devices.
The landlord is not required to file a petition
with the Board for approval of such a cost
passthrough. Such cost passthroughs are subject
to the following:

(i) Affected tenants shall be given notice of
any such passthrough as provided by applicable
notice of rent increase provisions of this Chapter
37, including but not limited to Section 37.3(b)(3).

(ii) A tenant may file a hardship application
with the Board, and be granted relief from all or
part of such a cost passthrough.

(iii) If a tenant's hardship application is
granted, the tenant's landlord may utilize any
available Public Utilities Commission low-in-
come rate discount program or similar program
for water bill reduction, based on that tenant's
hardship status.

Supp. No. 2, October 2006

Sec. 37.3.

San Francisco - Administrative Code

3662

(iv) A landlord shall not impose a
passthrough pursuant to Section 37.3(a)(5)(B) if
the landlord has filed for or received Board
approval for a rent increase under Section
37.8(e)(4) for increased operating and mainte-
nance expenses in which the same increase in
water bill charges attributable to water rate
increases resulting from issuance of any water
revenue bonds authorized at the November 5,
2002 election was included in the comparison
year cost totals.

(v) Where a tenant alleges that a landlord
has imposed a water revenue bond passthrough
that is not in compliance with Section 37.3(a)(5)(B),
the tenant may petition for a hearing under the
procedures provided by Section 37.8. In such a
hearing the landlord shall have the burden of
proving the accuracy of the calculation that is
the basis for the increase. Any tenant petition
challenging such a passthrough must be filed
within one year of the effective date of the
passthrough.

(vi) A tenant who has received a notice of
passthrough or a passthrough under this Section
37.3(a)(5)(B) shall be entitled to receive a copy of
the applicable water bill from the landlord upon
request.

(vii) The amount of permissible passthrough
per unit under this Section 37.3(a)(5)(B) shall be
determined as follows:

(1) The San Francisco Public Utilities Com-
mission will determine the charge per unit of
water, if any, that is attributable to water rate
increases resulting from issuance of water sys-
tem improvement revenue bonds authorized at
the November 5, 2002 election.

(2) The charge identified in Section
37.3(a)(5)(B)(vii)(l) shall be multiphed by the
total units of water used by each customer, for
each water bill. The result is the total dollar
amount of the water bill that is attributable to
water rate increases resulting from issuance of
water system improvement revenue bonds au-
thorized at the November 5, 2002 election. That
charge shall be a separate line item on each
customer's water bill.

(3) The dollar amount calculated under Sec-
tion 37.3(a)(5)(B)(vii)(2) shall be divided by two
(since a 50% passthrough is permitted), and then
divided by the total number of units covered by
the water bill, including commercial units. The
resulting dollar figure shall be divided by the
number of months covered by the water bill cycle
(most are two-month bill cycles), to determine
the amount of that water bill that may be passed
through to each residential unit for each month
covered by that bill.

(4) These passthroughs may be imposed on
a monthly basis. These passthroughs shall not
become part of a tenant's base rent. The amount
of each passthrough may vary from month to
month, depending on the amount calculated un-
der Sections 37.3(a)(5)(B)(vii)(l) through (3).

(viii) The Board may amend its rules and
regulations as necessary to implement this Sec-
tion 37.3(a)(5)(B).

(6) Property Tax. A landlord may impose
increases based upon a 100% passthrough of the
change in the landlord's property tax resulting
from the repajnnent of general obligation bonds
of the City and County of San Francisco ap-
proved by the voters between November 1, 1996,
and November 30, 1998 as provided in Section
37.2(q) above.

A landlord may impose increases based upon
a 50% passthrough of the change in the landlord's
property tax resulting from the repajnnent of
San Francisco Unified School District or San
Francisco Community College District general
obligation bonds approved by the voters after
November 1, 2006, as provided in Section 37.2(q)
above.

The amount of such increases shall be deter-
mined for each tax year as follows:

(A) For general obligation bonds of the City
and County of San Francisco approved by the
voters between November 1, 1996 and November
30, 1998:

(i) The Controller and the Board of Super-
visors will determine the percentage of the prop-
erty tax rate, if any, in each tax year attributable
to general obligation bonds approved by the

Supp. No. 2, October 2006

3663

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.3.

voters between November 1, 1996, and Novem-
ber 30, 1998, and repayable within such tax year.

(ii) This percentage shall be multiplied by
the total amount of the net taxable value for the
applicable tax year. The result is the dollar
amount of property taxes for that tax year for a
particular property attributable to the repay-
ment of general obligation bonds approved by
the voters between November 1, 1996, and No-
vember 30, 1998.

(iii) The dollar amount calculated under
Subsection (ii) shall be divided by the total
number of all units in each property, including
commercial units. That figure shall be divided by
12 months, to determine the monthly per unit
costs for that tax year of the repayment of
general obligation bonds approved by the voters
between November 1, 1996, and November 30,
1998.

(B) For general obligation bonds of the City
and County of San Francisco approved by the
voters after November 14, 2002 where any rent
increase has been disclosed and approved by the
voters:

(i) The Controller and the Board of Super-
visors will determine the percentage of the prop-
erty tax rate, if any, in each tax year attributable
to general obligation bonds approved by the
voters after November 14, 2002 and repayable
within such tax year.

(iii) The dollar amount calculated under
Subsection (ii) shall be divided by two, and then
by the total number of all units in each property,
including commercial units. That figure shall be
divided by 12 months, to determine the monthly
per unit costs for that tax year of the repajonent
of general obligation bonds approved by the
voters after November 14, 2002.

(C) For general obligation bonds of the San
Francisco Unified School District or San Fran-
cisco Community College District approved by
the voters after November 1, 2006:

(i) The Controller and the Board of Super-
visors will determine the percentage of the prop-
erty tax rate, if any, in each tax year attributable
to San Francisco Unified School District or San
Francisco Community College District general
obligation bonds approved by the voters after
November 1, 2006 and repayable within such tax
year.

(ii) This percentage shall be multiplied by
the total amount of the net taxable value for the
applicable tax year. The result is the dollar
amount of property taxes for that tax year for a
particular property attributable to the repay-
ment of San Francisco Unified School District or
San Francisco Community College District gen-
eral obligation bonds approved by the voters
after November 1, 2006.

(iii) The dollar amount calculated under
Subsection (ii) shall be divided by two, and then
by the total number of all units in each property,
including commercial units. That figure shall be
divided by 12 months, to determine the monthly
per unit costs for that tax year of the repayment
of San Francisco Unified School District or San
Francisco Community College District general
obligation bonds approved by the voters after
November 1, 2006.

(D) Landlords may pass through to each
unit in a particular property the dollar amount
calculated under these Subsections 37.3(a)(6)(A)
and (B) and (C). These passthroughs may be
imposed only on the anniversary date of each
tenant's occupancy of the property. These
passthroughs shall not become a part of a tenant's
base rent. The amount of each annual passthrough
imposed pursuant to this Subsection (6) may
vary from year-to-year, depending on the amount
calculated under Subsections (A) and (B) and
(C). Each annual passthrough shall apply only
for the 12 month period after it is imposed. A
landlord may impose the passthroughs described
in this Subsection (6) for a particular tax year
only with respect to those tenants who were

Supp. No. 2, October 2006

Sec. 37.3.

San Francisco - Administrative Code

3664

residents of a particular property on November
1st of the applicable tax year. A landlord shall
not impose a passthrough pursuant to this Sub-
section (6) if the landlord has filed for or received
Board approval for a rent increase under Section
37, 8(e)(4) for increased operating and mainte-
nance expenses in which the same increase in
property taxes due to the repa5niient of general
obligation bonds was included in the comparison
year cost totals.

(E) The Board will have available a form
which explains how to calculate the passthrough.

(F) Landlords must provide to tenants, on
or before the date that notice is served on the
tenant of a passthrough permitted under this
Subsection (6), a copy of the completed form
described in Subsection (E). This completed form
shall be provided in addition to the Notice of
Rent Increase required under Section 37.3(b)(5).
Where a tenant alleges that a landlord has
imposed a charge which exceeds the limitations
set forth in this Subsection (6), the tenant may
petition for a hearing under the procedures pro-
vided by Section 37.8. In such a hearing, the
landlord shall have the burden of proving the
accuracy of the calculation that is the basis for
the increase. Any tenant petitions challenging
such a passthrough must be filed within one year
of the effective date of the passthrough.

(G) The Board may amend its rules and
regulations as necessary to implement this Sub-
section (6).

(7) RAP Loans. A landlord may impose
rent increases attributable to the City
Administrator's amortization of the RAP loan in
an area designated on or after July 1, 1977,
pursuant to Chapter 32 of the San Francisco
Administrative Code.

(8) Additional Increases. A landlord who
seeks to impose any rent increase which exceeds
those permitted above shall petition for a rental
arbitration hearing pursuant to Section 37.8 of
this Chapter.

(9) A landlord may impose a rent increase
to recover costs incurred for the remediation of
lead hazards, as defined in San Francisco Health
Code Article 11 or 26. Such increases may be

based on changes in operating and maintenance
expenses or for capital improvement expendi-
tures as long as the costs which are the basis of
the rent increase are a substantial portion of the
work which abates or remediates a lead hazard,
as defined in San Francisco Health Code Article
11 or 26, and provided further that such costs are
approved for operating and maintenance ex-
pense increases pursuant to Section 37.8(e)(4)(A)
and certified as capital improvements pursuant
to Section 37.7 below.

When rent increases are authorized by this
Subsection 37.3(a)(9), the total rent increase for
both operating and maintenance expenses and
capital improvements shall not exceed 10 per-
cent in any 12 month period. If allowable rent
increases due to the costs of lead remediation
and abatement work exceed 10 percent in any 12
month period, an Administrative Law Judge
shall apply a portion of such excess to approved
operating and maintenance expenses for lead
remediation work, and the balance, if any, to
certified capital improvements, provided, how-
ever, that such increase shall not exceed 10
percent. A landlord may accumulate any ap-
proved or certified increase which exceeds this
amount, subject to the 10 percent limit.

(10) With respect to units occupied by re-
cipients of tenant-based rental assistance:

(A) If the tenant's share of the base rent is
not calculated as a fixed percentage of the tenant's
income, such as in the Section 8 voucher pro-
gram and the Over-FMR Tenancy Program, then:

(i) If the base rent is equal to or greater
than the payment standard, the rent increase
limitations in Sections 37.3(a)(1) and (2) shall
apply to the entire base rent, and the arbitration
procedures for those increases set forth in Sec-
tion 37.8 and 37.8A shall apply

(ii) If the base rent is less than the payment
standard, the rent increase limitations of this
Chapter shall not apply; provided, however, that
any rent increase which would result in the base
rent being equal to or greater than the payment
standard shall not result in a new base rent that
exceeds the pajmient standard plus the increase
allowable under Section 37.3(a)(1).

Supp. No. 2, October 2006

3665

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.3.

(B) If the tenant's share of the base rent is
calculated as a fixed percentage of the tenant's
income, such as in the Section 8 certificate pro-
gram and the rental subsidy program for the
HOPWA program, the rent increase limitations
in Section 37.3(a)(1) and (2) shall not apply. In
such circumstances, adjustments in rent shall be
made solely according to the requirements of the
tenant-based rental assistance program.

(b) Notice of Rent Increase for Tenants
in Occupancy. On or before the date upon
which a landlord gives a tenant legal notice of a
rent increase, the landlord shall inform the ten-
ant, in writing, of the following:

(1) Which portion of the rent increase re-
flects the annual increase, and/or a banked
amount, if any;

(2) Which portion of the rent increase re-
flects costs for increased operating and mainte-
nance expenses, rents for comparable units, and/or
capital improvements, rehabilitation, energy con-
servation measures improvements, or renewable
energy improvements certified pursuant to Sec-
tion 37.7. Any rent increase certified due to
increases in operating and maintenance costs
shall not exceed seven percent;

(3) Which portion of the rent increase re-
flects the passthrough of charges for: gas and
electricity; or the passthrough of increased water
bill charges attributable to water rate increases
resulting from issuance of water revenue bonds
authorized at the November 2002 election as
provided by Section 37.3(a)(5)(B), which charges
and calculations of charges shall be explained in
writing on a form provided by the Board; or the
passthrough of general obligation bond measure
costs as provided by Section 37.3(a)(6), which
charges shall be explained in writing on a form
provided by the Board as described in Section
37.3(a)(6)(E);

(4) Whiich portion of the rent increase re-
flects the amortization of the RAP loan, as de-
scribed in Section 37.3(a)(7) above.

(5) Nonconforming Rent Increases. Any

rent increase which does not conform with the
provisions of this Section shall be null and void.

(6) With respect to rental units occupied by
recipients of tenant-based rental assistance, the
notice requirements of this Subsection (b) shall
be required in addition to any notice required as
part of the tenant-based rental assistance pro-
gram.

(c) Initial Rent Limitation for Sub-
tenants. A tenant who subleases his or her
rental unit may charge no more rent upon initial
occupancy of the subtenant or subtenants than
that rent which the tenant is currently paying to
the landlord.

(d) Costa-Hawkins Rental Housing Act
(Civil Code Sections 1954.50. et seq.) Consis-
tent with the Costa-Hawkins Rental Housing
Act (Civil Code Sections 1954.50. et seq.) and
regardless of whether otherwise provided under
Chapter 37:

(1) Property Owner Rights to E^stablish
Initial and All Subsequent Rental Rates for
Separately Alienable Parcels.

(A) An owner or residential real property
may establish the initial and all subsequent
rental rates for a dwelling or a unit which is
alienable separate from the title to any other
dwelling unit or is a subdivided interest in a
subdivision as specified in subdivision (b), (d), or
(f) of Section 11004.5 of the California Business
and Professions Code. The owner's right to es-
tablish subsequent rental rates under this para-
graph shall not apply to a dwelling or unit where
the preceding tenancy has been terminated by
the owner by notice pursuant to California Civil
Code Section 1946 or has been terminated upon
a change in the terms of the tenancy noticed
pursuant to California Civil Code Section 827; in
such instances, the rent increase limitation pro-
visions of Chapter 37 shall continue to apply for
the duration of the new tenancy in that dwelling
or unit.

(B) Where the initial or subsequent rental
rates of a Subsection 37.3(d)(1)(A) dwelling or
unit were controlled by the provisions of Chapter
37 on January 1, 1995, the following shall apply:

(i) A tenancy that was in effect on December
31, 1995, remains subject to the rent control
provisions of this Chapter 37, and the owner may
not otherwise establish the subsequent rental
rates for that tenancy.

Supp. No. 2, October 2006

Sec. 37.3.

San Francisco - Administrative Code

3666

(ii) On or after January 1, 1999, an owner
may establish the initial and all subsequent
rental rates for any tenancy created on or after
January 1, 1996.

(C) An owner's right to establish subse-
quent rental rates under Subsection 37.3(d)(1)
shall not apply to a dwelling or unit which
contains serious health, safety, fire or building
code violations, excluding those caused by disas-
ters, for which a citation has been issued by the
appropriate governmental agency and which has
remained unabated for six months or longer
preceding the vacancy.

(2) Conditions for Establishing the Ini-
tial Rental Rate Upon Sublet or Assign-
ment. Except as identified in this Subsection
37.3(d)(2), nothing in this Subsection or any
other provision of law of the City and County of
San Francisco shall be construed to preclude
express establishment in a lease or rental agree-
ment of the rental rates to be applicable in the
event the rental unit subject thereto is sublet,
and nothing in this Subsection shall be con-
strued to impair the obligations of contracts
entered into prior to January 1, 1996, subject to
the following:

(A) Where the original occupant or occu-
pants who took possession of the dwelling or unit
pursuant to the rental agreement with the owner
no longer permanently reside there, an owner
may increase the rent by any amount allowed by
this Subsection to a lawful sublessee or assignee
who did not reside at the dwelling or unit prior to
January 1, 1996. However, such a rent increase
shall not be permitted while:

(i) The dwelling or unit has been cited in an
inspection report by the appropriate governmen-
tal agency as containing serious health, safety,
fire, or building code violations, as defined by
Section 17920.3 of the California Health and
Safety Code, excluding any violation caused by a
disaster; and,

(ii) The citation was issued at least 60 days
prior to the date of the vacancy: and,

(iii) The cited violation had not been abated
when the prior tenant vacated and had remained
unabated for 60 days or for a longer period of

time. However, the 60-day time period may be
extended by the appropriate governmental agency
that issued the citation.

(B) This Subsection 37.3(d)(2) shall not ap-
ply to partial changes in occupancy of a dwelling
or unit where one or more of the occupants of the
premises, pursuant to the agreement with the
owner provided for above (37.3(d)(2)), remains
an occupant in lawful possession of the dwellings
or unit, or where a lawful sublessee or assignee
who resided at the dwelling or unit prior to
January 1, 1996, remains in possession of the
dwelling or unit. Nothing contained in this Sub-
section 37.3(d)(2) shall be construed to enlarge or
diminish an owner's right to withhold consent to
a sublease or assignment.

(C) Acceptance of rent by the owner shall
not operate as a waiver or otherwise prevent
enforcement of a covenant prohibiting sublease
or assignment or as a waiver of an owner's rights
to establish the initial rental rate unless the
owner has received written notice from the ten-
ant that is party to the agreement and thereafter
accepted rent.

(3 ) Termination or Nonrenewal of a Con-
tract or Recorded Agreement with a Gov-
ernment Agency Limiting Rent. An owner
who terminates or fails to renew a contract or
recorded agreement with a governmental agency
that provides for a rent limitation to a qualified
tenant, shall be subject to the following:

(A) The tenant(s) who were beneficiaries of
the contract or recorded agreement shall be
given at least 90 days' written notice of the
effective date of the termination and shall not be
obligated to pay more than the tenant's portion
of the rent, as calculated under that contract or
recorded agreement, for 90 days following re-
ceipt of the notice of termination or nonrenewal.

(B) The owner shall not be eligible to set an
initial rent for three years following the date of
the termination or nonrenewal of the contract or
agreement.

(C) The rental rate for any new tenancy
established during the three-year period in that
vacated dwelling or unit shall be at the same
rate as the rent under the terminated or nonre-

Supp. No. 2, October 2006

3667

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.4.

newed contract or recorded agreement, plus any
increases authorized under this Chapter 37 after
the date of termination/non renewal.

(D) The provisions of Subsections
37.3(d)(3)(B) and (C) shall not apply to any new
tenancy of 12 months or more duration estab-
lished after January 1, 2000, pursuant to the
owner's contract or recorded agreement with a
governmental agency that provides for a rent
limitation to a qualified tenant unless the prior
vacancy in that dwelling or unit was pursuant to
a nonrenewed or canceled contract or recorded
agreement with a governmental agency that
provides for a rent limitation to a qualified
tenant.

(4) Subsection 37.3(d) does not affect the
authority of the City and County of San Fran-
cisco to regulate or monitor the basis or grounds
for eviction.

(5) This Subsection 37.3(d) is intended to be
and shall be construed to be consistent with the
Costa-Hawkins Rental Housing Act (Civil Code
Sections 1954.50. et seq.).

(e) Effect of Deferred Maintenance on
Passthroughs for Lead Remediation Tech-
niques.

(1) When lead hazards are remediated or
abated pursuant to San Francisco Health Code
Articles 11 or 26, are violations of State or local
housing health and safety laws, there shall be a
rebuttable presumption that the lead hazards
are caused or created by deferred maintenance
as defined herein of the current or previous
landlord. If the landlord fails to rebut the pre-
sumption, the costs of such work shall not be
passed through to tenants as either a capital
improvement or an operating and maintenance
expense. If the landlord rebuts the presumption,
he or she shall be entitled to a rent increase if
otherwise justified by the standards set forth in
this Chapter.

(2) For purposes of the evaluation of peti-
tions for rent increases for lead remediation
work, maintenance is deferred if a reasonable
landlord under the circumstances would have
performed, on a regular basis, the maintenance
work required to keep the premises from being in

violation of housing safety and habitability stan-
dards set forth in California Civil Code Section
1941 and the San Francisco Municipal Code. In
order to prevail on a deferred maintenance de-
fense, a tenant must show that the level of repair
or remediation currently required would have
been lessened had maintenance been performed
in a more timely manner. (Added by Ord. 20-84,
App. 1/19/84; amended by Ord. 338-87, App.
8/14/87; Ord. 102-91, App. 3/21/91; Ord. 127-91,
App. 4/2/91; Ord. 221-92, App. 7/14/92; Proposi-
tion H, 11/3/92; Ord. 405-96, App. 10/21/96; Ord.
179-98, App. 5/29/98; Ord. 250-98, App. 7/31/98;
Ord. 347-99, File No. 992197, App. 12/30/99; Ord.
116-00, File No. 991315, App. 6/2/2000; Proposi-
tion H, 12/2/2000; Ord. 2-03, File No. 020716,
App, 1/21/2003; Ord. 107-03, File No. 030689,
App. 5/23/2003; Ord. 99-04, File No. 031992,
App. 6/4/2004; Ord. 252-06, File No. 061183, App.
10/11/2006)

SEC. 37.4. ESTABLISHMENT;
APPOINTMENT; TERMS; EXECUTIVE
DIRECTOR; FUNDING; COMPENSATION.

(a) There is hereby established a board to
be known as the San Francisco Residential Rent
Stabilization and Arbitration Board (hereinafter
called "Board"), consisting of five members. Regu-
lar members, each of whom shall have a specific
alternate having the same qualifications as the
regular member, shall serve at the pleasure of
the Mayor. All regular members and alternate
members shall be appointed by the Mayor.

(b) The Board shall consist of two landlords,
two tenants, and one person who is neither a
landlord nor a tenant and who owns no residen-
tial rental property; and an alternate for each
specific member. All members shall be residents
of the City and County of San Francisco. If one of
the two regular landlord members is unavailable
to vote, that regular member's specific alternate
shall be seated and vote, and if that regular
member's specific alternate is also unavailable to
vote, the other landlord alternate shall (if avail-
able) be seated and vote as a substitute alter-
nate. If one of the two regular tenant members is
unavailable to vote, that regular member's spe-
cific alternate shall be seated and vote, and if

Supp. No. 2, October 2006

Sec. 37.4.

San Francisco - Administrative Code

3668

that regular member's specific alternate is also
unavailable to vote, the other tenant alternate
shall (if available) be seated and vote as a
substitute alternate.

(c) In accordance with applicable State law,
all members shall disclose all present holdings
and interests in real property, including inter-
ests in corporations, trusts or other entities with
real property holdings.

(d) All members shall be appointed by the
Mayor to serve 48-month terms. All vacancies
occurring during a term shall be filled for the
unexpired term.

(e) The Board shall elect a Chairman and
Vice-Chairman from among its regular mem-
bers.

(f) The position of Executive Director shall
be established pursuant to and subject to Char-
ter Sections 3.500 and 8.200. The person occupy-
ing the position of Executive Director shall be
appointed by the Chairman of the Board with
the approval of a majority of the members. All
staff personnel shall be under the immediate
direction and supervision of the Executive Direc-
tor.

(g) Pursuant to the budgetary and fiscal
pro-visions of the Charter, the Board of Supervi-
sors shall provide funds to pay for staff person-
nel, services and facilities as may be reasonably
necessary to enable the Board to exercise its
powers and perform its duties under this Chap-
ter. A special fund to be known as the Residential
Rent Stabilization and Arbitration Fund shall be
established under the supervision and direction
of the Board for the receipt of fees under this
Chapter, such fees to be appropriated by the
Board of Supervisors for the operation of the
Board.

(h) Subject to the budgetary and fiscal limi-
tations of the Charter, each member shall be
paid $75 per Commission meeting attended if
the meeting lasts for six hours or more in a single
24-hour period. The Commission shall adopt
rules to allow for payment of an equitable por-
tion of this per diem if a meeting lasts less than
six hours. The total per diem shall not exceed
$750 per month. In addition, each member may

receive reimbursement for actual expenses in-
curred in the course and scope of the member's
duties. (Amended by Ord. 435-86, App. 11/10/86;
Ord. 162-93, App. 5/28/93; Ord. 222-03, File No.
031213, App. 9/5/2003)

SEC. 37.5. MEETINGS OF THE BOARD.

(a) Time and Place of Meetings. The

Board shall meet as often as necessary to stay
current with the workload but in no event less
than once a month. The time and place of meet-
ings shall be determined by rules adopted by the
Board. The first meeting shall be held within 15
days of the appointment of the first Board. The
matter of establishing standards for the selec-
tion of Administrative Law Judges shall be con-
sidered at the first meeting.

(b) Quorum. A quorum for the transaction
of official business shall consist of a majority of
the total Board members. No action may be
taken by the Board at any meeting attended by
less than the quorum. A decision by the Board
shall require a majority of all of the members of
the Board.

(d) Meetings Open and Public. All meet-
ings of the Board shall be open and public in
accordance with the Charter and applicable State
law. (Added by Ord. 276-79, App. 6/12/79; amended
by Ord. 347-99, File No. 992197, App. 12/30/99)

SEC. 37.6. POWERS AND DUTIES.

In addition to other powers and duties set
forth in this Chapter, and in addition to powers
under the Charter and under other City Codes,
including powers and duties under Administra-
tive Code Chapter 49 ("Interest Rates on Secu-
rity Deposits"), the Board shall have the power
to:

(a) Promulgate policies, rules and regula-
tions to effectuate the purposes of this Chapter,
and to effectuate the purposes of Administrative
Code Chapter 41D;

Supp. No. 2, October 2006

3669

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.7.

(b) Hire such staff, including Administra-
tive Law Judges, as may be reasonably neces-
sary to perform its functions, and promulgate
standards for all such staff, subject to the Civil
Service provisions of the Charter;

(c) Conduct rental arbitration hearings and
residential hotel visitor policy hearings, and ad-
minister oaths and affirmations in connection
with such hearings;

(d) Publish, on March 1st of each year, the
increase in the CPI for the preceding 12 months,
as made available by the U.S. Department of
Labor;

(e) Make studies and surveys and conduct
such hearings as necessary to perform its func-
tions;

(f) Report biannually to the Mayor and the
Board of Supervisors on its activities and on
progress made towards the achievement of the
purposes of the Chapter;

(g) Make available to the public, on request,
policies, rules and regulations, reports and sur-
veys in accordance with applicable State law;

(h) Issue rules and regulations for the con-
duct of its own affairs;

(i) Be empowered to request and, if granted,
to receive funds appropriated by the Board of
Supervisors through the Mayor;

(j) Maintain, on at least a monthly basis,
statistics on the number of notices to vacate filed
with the Board pursuant to Section 37.9(c) and
statistics on the causes given in such notices or
in any additional written documents as provided
in Section 37.9(c). Statistics shall include avail-
able data on evictions involving school-age (kin-
dergarten through grade twelve) children, includ-
ing data on whether the evictions occurred during
the school term. Said statistics shall be pub-
lished in a report on March 1st every year, and
copies of the report shall be submitted to the
Mayor and Board of Supervisors;

(k) Compile a list at random, on a monthly
basis, of 10 percent of the notices to vacate filed
pursuant to Section 37.9(c) which state on the
notice or in any additional written document any
causes under Section 37.9(a)(8) as the reason for

eviction. Said list shall be transmitted to the
District Attorney on a monthly basis for investi-
gation pursuant to Section 37.9(c).

(1) Periodically review the Uniform Visitor
Policy for Residential Hotels and determine
amendments as appropriate; and hear and deter-
mine hotel operator petitions for Supplemental
Visitor Policies, consistent with Administrative
Code Chapter 41D (Residential Hotel Visitor
Policies).

(m) Hear and decide petitions from residen-
tial hotel occupants (whether or not an occupant
qualifies as a "tenant" under this Chapter 37)
who allege violation of Administrative Code Chap-
ter 41D, including alleged violations of the Uni-
form Visitor Policy or any approved Supplemen-
tal Visitor Policy. Current or former hotel
occupants may file such petitions. These peti-
tions may require a determination whether, and
to what extent, a residential hotel's policies are
in compliance with Administrative Code Chapter
41D, including compliance with the Uniform
Visitor Policy (Amended by Ord. 7-87, App. 1/15/
87; Ord. 347-99, File No. 992197, App. 12/30/99;
Ord. 62-02, File No. 020343, App. 5/3/2002; Ord.
107-02, File No. 020296, App. 7/5/2002; Ord.
251-06, File No. 061077, App. 10/11/2006)

SEC. 37.7. CERTIFICATION OF RENT
INCREASES FOR CAPITAL
IMPROVEMENTS, REHABILITATION
WORK, ENERGY CONSERVATION
IMPROVEMENTS, AND RENEWABLE
ENERGY IMPROVEMENTS.

(a) Authority. In accordance with such
guidelines as the Board shall establish, the Board
and designated Administrative Law Judges shall
have the authority to conduct hearings in order
to certify rental increases to the extent necessary
to amortize the cost of capital improvements,
rehabilitations, energy conservation improve-
ments, and renewable energy improvements. Costs
determined to be attributable to such work and
improvements shall be amortized over a period
which is fair and reasonable for the tj^ie and the
extent of the work and improvements, £md which
will provide an incentive to landlords to main-
tain, improve and renovate their properties while

Supp. No. 2, October 2006

Sec. 37.7.

San Francisco - Administrative Code

3670

at the same time protecting tenants from exces-
sive rent increases. Costs attributable to routine
repair and maintenance shall not be certified.

(b) Requirements for Certification. The
Board and designated Administrative Law Judges
may only certify the costs of capital improve-
ments, rehabilitation, energy conservation im-
provements, and renewable energy improve-
ments, where the following criteria are met:

(1) The landlord completed capital improve-
ments or rehabilitation on or after April 15,
1979, or the landlord completed installation of
energy conservation measures on or after July
24, 1982, and has filed a proof of compliance with
the Bureau of Building Inspection in accordance
with the requirements of Section 1207(d) of the
Housing Code;

(2) The landlord has not yet increased the
rent or rents to reflect the cost of said work;

(3) The landlord has not been compensated
for the work by insurance proceeds;

(4) The building is not subject to a RAP loan
in a RAP area designated prior to July 1, 1977;

(5) The landlord files the certification peti-
tion no later than five years after the work has
been completed;

(6) The cost is not for work required to
correct a code violation for which a notice of
violation has been issued and remained un-
abated for 90 days unless the landlord made
timely good faith efforts within that 90-day pe-
riod to commence and complete the work but was
not successful in doing so because of the nature
of the work or circumstances beyond the control
of the landlord. The landlord's failure to abate
within the original 90-day period raises a rebut-
table presumption that the landlord did not
exercise timely good faith efforts.

The Board shall establish amortization periods
and cost allocation formulas, in accordance with
this Section 37.7. Costs shall be allocated to each
unit according to the benefit of the work and
improvements attributable to such unit.

(1) Application Filed Before [May 1, 2002
or 60 Days Prior to Passage of This Ordi-
nance on Second Reading, Whichever is

Later]. The following provisions shall apply to
all apphcations filed before [May 1, 2002 or 60
days prior to passage of this Ordinance on Sec-
ond Reading, whichever is later].

(A) Amortization Periods. Costs shall be
amortized on a straight-line basis over a seven or
ten-year period, depending upon which category
described below most closely relates to the type
of work or improvement and its estimated useful
life.

(i) Schedule I — Seven-Year Amortiza-
tion. The following shall be amortized over a
seven-year period: Appliances, such as new stoves,
disposals, washers, dryers and dishwashers; fix-
tures, such as garage door openers, locks, light
fixtures, water heaters and blankets, shower
heads, time clocks and hot water pumps; and
other improvements, such as carpeting, lino-
leum, and exterior and interior painting of com-
mon areas. If the appliance is a replacement for
which the tenant has already had the benefit,
the cost will not be amortized as a capital im-
provement, but will be considered part of oper-
ating and maintenance expenses. Appliances may
be amortized as capital improvements when: (1)
part of a remodeled kitchen; (2) based upon an
agreement between the tenant and landlord;
and/or (3) it is a new service or appliance the
tenant did not previously have.

(ii) Schedule II — Ten- Year Amortization.
The following shall be amortized over a ten-year
period: New foundation, new floor structure, new
ceiling or walls-new sheetrock, new plumbing
(new fixtures, or piping), weather stripping, ceil-
ing insulation, seals and caulking, new furnaces
and heaters, refrigerators, new electrical wiring,
new stairs, new roof structure, new roof cover,
new window, fire escapes, central smoke detec-
tion system, new wood or tile floor cover, new
sprinkler system, boiler replacement, air condi-
tioning-central system, exterior siding or stucco,
elevator rebuild, elevator cables, additions such
as patios or decks, central security system, new
doors, new mail boxes, new kitchen or bathroom
cabinets, and sinks.

(B) Allowable Increase. One hundred per-
cent (100%) of the certified costs of capital im-
provements, rehabilitation, and energy conser-

Supp. No. 2, October 2006

3670.1

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.7.

vation improvements may be passed through to
the tenants who benefit from such work and
improvements. However no increase under this
Subsection 37.7(c)(1) shall exceed, in a twelve-
month period, ten percent (10%) of the tenant's
base rent at the time the petition was filed or
$30.00, whichever is greater. A landlord may
accumulate any certified increase which exceeds
this amount and impose the increase in subse-
quent years, subject to this 10% or $30.00 limi-
tation.

(2) Applications Filed On or After [May
1, 2002 or 60 Days Prior to Passage of This
Ordinance on Second Reading, Whichever
is Later], For Qualified Energy Conserva-
tion Improvements and Renewable Energy
Improvements. For Applications filed on or
after [May 1, 2002 or 60 days prior to passage of
this Ordinance on Second Reading, whichever is
later], the following provisions shall apply to
certification of costs for qualified energy conser-
vation improvements and renewable energy im-
provements.

(A) Amortization Periods. Costs shall be
amortized on a straight-line basis over the pe-
riod of time provided in 37.7(c)(2)(B)(i),or as
determined pursuant to the procedure provided

in 37.7(c) (2)(B)(ii).

(B) For purposes of this Subsection 37.7(c)(2),
qualified energy conservation improvements and
renewable energy improvements are:

(i) 100% of new EPA Energy-Star-compliant
refrigerators where the refrigerator replaced is
more than live years old and where the unit has
separate metering, which costs shall be amor-
tized on straight-line basis over a ten-year pe-
riod; and,

(ii) Other improvements as may be ap-
proved by the Board of Supervisors upon recom-
mendation of the Rent Board following hearings
and recommendations by the Commission on the
Environment in an Energy Conservation Improve-
ments and Renewable Energy Improvements List
(List), as follows:

(I) The Commission on the Environment
shall hold hearings to develop a list of recom-
mended energy conservation improvements and

renewable energy improvements that demonstra-
bly benefit tenants in units that have separate
electrical and/or natural gas metering. Such rec-
ommendations shall include consideration of cost
effectiveness for tenants, appropriate amortiza-
tion schedules, and permissible passthrough
amounts that will encourage landlords to make
such improvements.

(II) The Commission shall also consider
whether the certification for each such improve-
ment should include the entire improvement, or
only that portion of the improvement cost di-
rectly attributable to energy conservation or re-
newable energy.

Supp. No. 2, October 2006

[INTENTIONALLY LEFT BLANK]

Supp. No. 2, October 2006

3671

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.7.

(III) The List shall take into consideration
the variety and conditions of housing in the City.

(IV) The Commission on the Environment
shall adopt the List at a public meeting, and
shall transmit the List to the Rent Board no later
than [six months after the effective date of this
Ordinance] .

(V) The Commission on the Environment
shall periodically review and amend the List as
warranted by changes in technology or condi-
tions in the electricity and natural gas markets.
Any amended List shall be transmitted forth-
with to the Rent Board.

(VI) The Rent Board shall consider any
such List received from the Commission on the
Environment, and recommend appropriate Sub-
section 37.7(c)(2) amendments to the Board of
Supervisors.

(3) Applications Filed On or After [May
1, 2002 or 60 Days Prior to Passage of This
Ordinance on Second Reading, Whichever
is Later], For Seismic Work and Improve-
ments Required by Law, and for Work and
Improvements Required by Laws Enacted
After [May 1, 2002 or 60 days prior to pas-
sage of this Ordinance on Second Reading,
whichever is later].

For applications filed on or after [May 1, 2002
or 60 days prior to passage of this Ordinance on
Second Reading, whichever is later]:

(A) This Subsection 37.7(c)(3) shall apply to
certification of costs for seismic work and im-
provements required by law.

(B) This Subsection 37.7(c)(3) shall apply to
certification of costs for capital improvement,
rehabilitation, energy conservation, and renew-
able energy work and improvements required by
federal, state, or local laws enacted on or after
[IMay 1, 2002 or 60 days prior to passage of this
Ordinance on Second Reading, whichever is later] .

(D) Allowable Increase. One hundred per-
cent (100%) of the certified costs of capital im-
provement, rehabilitation, energy conservation,
and renewable energy work and improvements

required by law may be passed through to the
tenants who benefit from such work and improve-
ments. Any rent increases under this Section
37.7(c)(3) shall not exceed, in a twelve-month
period, a total often percent (10%) of the tenant's
base rent at the time the petition was filed or
$30.00, whichever is greater. A landlord may
accumulate any certified increase which exceeds
this amount and impose the increase in subse-
quent years, subject to this 10% or $30.00 limi-
tation.

(4) Applications Filed On or After [May
1, 2002 or 60 days prior to passage of this
Ordinance on Second Reading, whichever
is later], for Other Work and Improvements
On Properties With Five Residential Units
or Less. For applicEitions filed on or after [May
1, 2002 or 60 days prior to passage of this
Ordinance on Second Reading, whichever is later] ,
the following provisions shall apply to certifica-
tion of all work and improvements for properties
containing five residential units or less, with the
exception of work and improvements costs certi-
fied for passthrough under Subsections 37.7(c)(2)
or (3):

(A) Amortization Periods. Costs shall be
amortized on a straight-line basis over a ten,
fifteen or twenty-year period, depending upon
which category described below most closely re-
lates to the type of work or improvement and its
estimated useful life.

(i) Schedule I — Ten-Year Amortization.

The following shall be amortized over a ten-year
period: New roof structure, new roof cover, elec-
trical heaters, central security system, telephone
entry systems, new wood frame windows, new
mailboxes, weather-stripping, ceiling insulation,
seals and caulking, central smoke detection sys-
tem, new doors and skylights; appliances, such
as new stoves, disposals, refrigerators, washers,
dryers and dishwashers; fixtures, such as garage
door openers, locks, light fixtures, water heaters
and blankets, shower heads, time clocks and hot
water pumps; and other improvements, such as
carpeting, linoleum, and exterior and interior
painting of common areas. If the appliance is a
replacement for which the tenant has already

Sec. 37.7.

San Francisco - Administrative Code

3672

had the benefit, the cost will not be amortized as
a capital improvement but will be considered
part of operating and maintenance expenses.
Appliances may be amortized as capital improve-
ments when: (1) part of a remodeled kitchen; (2)
based upon an agreement between the tenant
and landlord; and/or (3) it is a new service or
appliance the tenant did not previously have,

(ii) Schedule II — Fifteen- Year Amortiza-
tion. The following shall be amortized over a
fifteen-year period: New floor structure, new
ceiling or walls-new sheetrock, wood decks, new
stairs, new furnaces and gas heaters, new ther-
mal pane windows, new wood or tile floor cover,
new sprinkler systems, air conditioning-central
system, exterior siding or stucco, elevator re-
build, elevator cables, new kitchen or bathroom
cabinets, and sinks.

(iii) Schedule III — Twenty- Year Amorti-
zation. The following shall be amortized over a
twenty-year period: New foundation, new plumb-
ing (new fixtures or piping), boiler replacement,
new electrical wiring, fire escapes, concrete pa-
tios, iron gates, sidewalk replacement and chim-
neys.

(B) Allowable Increase. One hundred per-
cent (100%) of the certified costs of capital im-
provement, rehabilitation, and energy conserva-
tion work and improvements may be passed
through to the tenants who benefit from such
work and improvements. However, no increase
under this Subsection 37.7(c)(4) shall exceed, in
a twelve-month period, five percent (5%) the
tenant's base rent at the time the petition was
filed or $30.00, whichever is greater. A landlord
may accumulate any certified increase which
exceeds this amount and impose the increase in
subsequent years subject to this 5% or $30.00
limitation.

(5) For Applications Filed On or After
[May 1, 2002 or 60 Days Prior to Passage of
This Ordinance on Second Reading, Which-
ever is Later], for Other Work and Improve-
ments for Properties with Six or more Resi-
dential Units. For applications filed on or after
[May 1, 2002 or 60 days prior to passage of this
Ordinance on Second Reading, whichever is later].

the following provisions shall apply to certifica-
tion of all work and improvements for properties
containing six residential units or more, with the
exception of work and improvements certified
under Subsections 37.7(c)(2) or (3):

(ii) Schedule II — Ten-Year Amortization.
The following shall be amortized over a ten year
period: New foundation, new floor structure, new
ceiling or walls — new sheetrock, new plumbing
(new fixtures or piping), weather stripping, ceil-
ing insulation, seals and caulking, new furnaces
and heaters, refrigerators, new electrical wiring,
new stairs, new roof structure, new roof cover;
new window, fire escapes, central smoke detec-
tion system, new wood or tile floor cover, new
sprinkler system, boiler replacement, air condi-
tioning — central system, exterior siding or stucco,
elevator rebuild, elevator cables, additions such
as patios or decks, central security system, new
doors, new mail boxes, new kitchen or bathroom
cabinets, sinks, telephone entry system, sky-
lights, iron gates, sidewalk replacement and
chimneys.

3673

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.7.

(B) Allowable Increase.

(i) Only fifty percent (50%) of the costs
certified under this Subsection 37.7(c)(5) may be
passed through to the tenants who benefit from
such work and improvements. However, no in-
crease under this Subsection 37.7(c)(5) shall ex-
ceed, in a twelve-month period, ten percent (10%)
of the tenant's base rent at the time the petition
was filed or $30.00, whichever is greater. A
landlord may accumulate any certified increase
which exceeds this amount and impose the in-
crease in subsequent years, subject to this 10%
or $30.00 limitation.

(ii) In the alternative a tenant may elect to
have one hundred percent (100%) of the costs
certified under this Subsection 37.7(c)(5) passed
through to the tenant. In that event no increase
under this Subsection shall exceed, in a twelve-
month period, five percent (5%) of the tenant's
base rent at the time the application was filed,
and over the life of the tenancy the total increase
shall never exceed fifteen percent (15%) of the
tenant's base rent at the time the application
was filed. A tenant must elect this alternative by
filing such an election with the Board on a form
prescribed by the Board. An election may be filed
at any time after the application is filed but no
later than fifteen (15) calendar days after the
Administrative Law Judge's decision on the ap-
plication is mailed to the tenant. In a unit with
multiple tenants, the election form must be signed
by a majority (more than 50% ) in order for the
election to be accepted. If a timely election is
made after a decision has been issued, an adden-
dum to the decision will be issued reflecting the
tenant's election.

(6) Development of On-Line Programs.

The Board, in conjunction with the Department
of Telecommunications and Information Ser-
vices, shall design and implement on-line pro-
grams by September 1, 2003 to allow landlords
and tenants to perform calculations concerning
allowable increases for capital improvement, re-
habilitation, energy conservation, and renewable
energy work, and to compare average costs for
work certified in prior decisions.

(d) Estimator. The Board or its Executive
Director may hire an estimator where an expert
appraisal is required.

(e) Filing Fee. The Board shall establish a
filing fee based upon the cost of the capital
improvement, rehabilitation, energy conserva-
tion improvement, or renewable energy improve-
ment being reviewed. Such fees will pay for the
costs of an estimator. These fees shall be depos-
ited in the Residential Rent Stabilization and
Arbitration Fund pursuant to Section 10.117-88
of this Code.

(f) Application Procedures.

(1) Pre- Application Notice for Large
Projects for Parcels or Buildings Contain-
ing Six or More Residential Units. If at any

time prior to filing an application the landlord
determines that the total cost of a project for a
parcel or a building containing six or more resi-
dential units is reasonably expected to exceed
$25,000 multiplied by the number of units on the
parcel or in the building, the landlord shall
immediately inform each tenant and the Rent
Board in writing of the anticipated costs of the
work. The landlord's notice must occur within 30
days after such determination by the landlord.

(2) Filing. Landlords who seek to pass
through the costs of capital improvements, reha-
bilitation, energy conservation improvements, or
renewable energy improvements, must file an
application on a form prescribed by the Board.
The application shall be accompanied by such
supporting material as the Board shall pre-
scribe. All applications must be submitted with
the filing fee established by the Board,,

For each petition totaling more than $25,000,
in addition to the supporting material prescribed
by the Board for all petitions, the applicant must
either:

(A) Provide copies of competitive bids re-
ceived for work and materials; or,

(B) Provide copies of time and materials
billing for work performed by all contractors and
subcontractors; or

Sec. 37.7.

San Francisco - Administrative Code

3674

(3) Filing Date. Applications must be filed
prior to the mailing or delivery of legal notice of
a rent increase to the tenants of units for which
the landlord seeks certification and in no event
more than five years after the work has been
completed.

(4) Effect of Filing Application. Upon
the filing of the application, the requested in-
crease will be inoperative until such time as the
Administrative Law Judge makes findings of
fact at the conclusion of the certification hearing.

(5) Notice to Parties. The Board shall
calendar the application for hearing before a
designated Administrative Law Judge and shall
give written notice of the date to the parties at
least 10 days prior to the hearing.

(g) Certification Hearings.

(1) Time of Hearing. The hearing shall be
held within 45 days of the filing of the applica-
tion.

(2) Consolidation. To the greatest extent
possible, certification hearings with respect to a
given building shall be consolidated. Where a
landlord and/or tenant has filed a petition for
hearing based upon the grounds and under the
procedure set forth in Section 37.8, the Board
may, in its discretion, consolidate certification
hearings with hearings on Section 37.8 petitions.

(3) Conduct of Hearing. The hearing shall
be conducted by an Administrative Law Judge
designated by the Board. Both parties may offer
such documents, testimony, written declarations
or other evidence as may be pertinent to the
proceedings. Burden of proof is on the landlord. A
record of the proceedings must be maintained for
purposes of appeal.

(4) Determination of the Administra-
tive Law Judge. In accordance with the Board's
amortization schedules and cost allocation for-
mulas, the Administrative Law Judge shall make
findings as to whether or not the proposed rent
increases are justified based upon the following
considerations:

(A) The application and its supporting docu-
mentation.

(B) Evidence presented at the hearing es-
tablishing both the extent and the cost of the
work performed.

(D) Any other such relevant factors as the
Board shall specify in rules and regulations.

(5) Findings of Fact. The Administrative
Law Judge shall make written findings of fact,
copies of which shall be mailed within 30 days of
the hearing.

(6) Payment or Refund of Rents to Imple-
ment Certification Decision. If the Adminis-
trative Law Judge finds that all or any portion of
the heretofore inoperative rent increase is justi-
fied, the tenant shall be ordered to pay the
landlord that amount. If the tenant has paid an
amount to the landlord which the Administra-
tive Law Judge finds unjustified, the Adminis-
trative Law Judge shall order the landlord to
reimburse the tenant said amount.

(7) Finality of Administrative Law

Judge's Decision. The decision of the Adminis-
trative Law Judge shall be final unless the
Board vacates his or her decision on appeal.

(8) Appeals. Either party may file an ap-
peal of the Administrative Law Judge's decision
with the Board. Such appeals are governed by
Section 37.8(f) below.

(h) Hardship Applications.

(1) A tenant may file a hardship application
at any time on grounds of financial hardship
with respect to any rent increase based on certi-
fied costs of capital improvements, rehabilitation
work, energy conservation improvements, or re-
newable energy improvements. Payment of such
rent increases(s) set forth in the hardship appli-
cation shall be stayed for a period of 60 days from
the date of filing, and the stay shall be extended
if the Board accepts the application for hearing.

(2) Hardship applications shall be available
in multiple languages.

(3) Multilingual notice of hardship applica-
tion procedures shall be mailed with each Admin-
istrative Law Judge or Board decision.

3675

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.8.

(4) Within six months after [the efFective
date of this ordinance] the Rent Board shall
implement a process for direct outreach to land-
lords and tenants whose primary language is not
English, regarding availability and use of the
hardship application procedure. Within three
months of implementation the Board shall pro-
vide a report to the Board of Supervisors regard-
ing this outreach program, describing the imple-
mentation process and any known results.
(Amended by Ord. 438-83, App. 9/2/83; Ord.
278-89, App. 8/2/89; Ord. 162-93, App. 5/28/93;
Ord. 347-99, File No. 992197, App. 12/30/99; Ord.
2-03, File No. 020716, App, 1/21/2003)

SEC. 37.8. ARBITRATION OF RENTAL
INCREASE ADJUSTMENTS.

(a) Authority of Board and Administra-
tive Law Judge. In accordance with such guide-
lines as the Board shall establish, the Board and
designated Administrative Law Judges shall have
the authority to arbitrate rental increase adjust-
ments, and to administer the rent increase pro-
test procedures with respect to RAP rental units
as set forth in Chapter 32 of the San Francisco
Administrative Code.

(b) Request for Arbitration.

(1) Landlords. Landlords who seek to im-
pose rent increases which exceed the limitations
set forth in Section 37.3(a) above must request
an arbitration hearing as set forth in this Sec-
tion. The burden of proof is on the landlord.

(2) Tenants.

(A) Notwithstanding Section 37.3, tenants
of non-RAP rental units and tenants of RAP
rental units in areas designated on or after July
1, 1977, may request arbitration hearings where
a landlord has substantially decreased services
without a corresponding reduction in rent and/or
has failed to perform ordinary repair and main-
tenance under State or local law and/or has
failed to provide the tenant with a clear expla-
nation of the current charges for gas and elec-
tricity or bond measure costs passed through to
the tenant and/or imposed a nonconforming rent
increase which is null and void. The burden of
proof is on the tenant.

(B) Tenants of RAP rental units in areas
designated prior to July 1, 1977, may petition for
a hearing where the landlord has noticed an
increase which exceeds the limitations set forth
in Section 32.73 of the San Francisco Adminis-
trative Code. After a vacancy has occurred in a
RAP rental unit in said areas, a new tenant of
said unit may petition for a hearing v/here the
landlord has demanded and/or received a rent
for that unit which exceeds the rent increase
limitations set forth in Section 32.73 of the San
Francisco Administrative Code. The burden of
proof is on the landlord.

(1) Filing. The request for arbitration must
be filed on a petition form prescribed by the
Board and shall be accompanied by such support-
ing material as the Board shall prescribe, includ-
ing but not limited to, justification for the pro-
posed rental increase.

(2) Filing Date. The petition must be filed
prior to the mailing or delivering to the tenant or
tenants legal notice of the rental increase exceed-
ing the limitations as defined in Section 37.3.

(3) Effect of Timely Filing of Petition.
Provided a completed petition is timely filed,
that portion of the requested rental increase
which exceeds the limitations set forth in Section
37.3 and has not been certified as a justifiable
increase in accordance with Section 37.7 is inop-
erative until such time as the Administrative
Law Judge makes findings of fact at the conclu-
sion of the arbitration hearing.

(4) Notice to Parties. The Board shall
calendar the petition for hearing before a desig-
nated Administrative Law Judge and shall give
written notice of the date to the parties at least
10 days prior to the hearing.

(d) Procedure for Tenant Petitioners.

(1) Filing; Limitation. The request for ar-
bitration must be filed on a petition form pre-
scribed by the Board and must be accompanied
by such supporting material as the Board shall
prescribe, including but not limited to, a copy of
the landlord's notice of rent increase. If the
tenant petitioner has received certification find-
ings regarding his rental unit in accordance with

Sec. 37.8.

San Francisco - Administrative Code

3676

Section 37.7, such findings must accompany the
petition. If the tenant petitioner has received a
notification from the Chief Administrative Of-
ficer with respect to base rent and amortization
of a RAP loan, such notification must accompany
the petition. A tenant petition regarding a gas
and electricity passthrough must be filed within
one year of the effective date of the passthrough
or within one year of the date the passthrough
was required to be recalculated pursuant to rules
and regulations promulgated by the Board. A
tenant petition regarding a water revenue bond
passthrough under Section 37.3(a)(5)(B) must be
filed within one year of the effective date of the
passthrough. A tenant petition regarding a gen-
eral obligation bond cost passthrough under Sec-
tion 37.3(a)(6) must be filed within one year of
the effective date of the passthrough.

(2) Notice to Parties. The Board shall
calendar the petition for hearing before a desig-
nated Administrative Law Judge and shall give
written notice of the date to the parties at least
10 days prior to the hearing. Responses to a
petition for hearing may be submitted in writing.

(e) Hearings.

(1) Time of Hearing. The hearing shall be
held within 45 days of the filing of the petition.
The level of housing services provided to tenants'
rental units shall not be decreased during the
period between the filing of the petition and the
conclusion of the hearing.

(2) Consolidation. To the greatest extent
possible, hearings with respect to a given build-
ing shall be consolidated.

(4) Determination of the Administra-
tive Law Judge: Rental Units. Based upon
the evidence presented at the hearing and upon
such relevant factors as the Board shall deter-
mine, the Administrative Law Judge shall make
findings as to whether or not the landlord's

proposed rental increase exceeding the limita-
tions set forth in Section 37.3 is justified or
whether or not the landlord has effected a rent
increase through a reduction in services or has
failed to perform ordinary repair and mainte-
nance as required by State or local law; and
provided further that, where a landlord has
imposed a passthrough for property taxes pursu-
ant to Section 37.3(6)(D), the same increase in
property taxes shall not be included in the cal-
culation of increased operating and maintenance
expenses pursuant to this Subsection (4). In
making such findings, the Administrative Law
Judge shall take into consideration the following
factors:

(A) Increases or decreases in operating and
maintenance expenses, including, but not lim-
ited to, real estate taxes, sewer service charges,
janitorial service, refuse removal, elevator ser-
vice, security system, and debt service; provided,
however, when a unit is purchased after the
effective date of this ordinance, and this pur-
chase occurs within two years of the date of the
previous purchase, consideration shall not be
given to that portion of increased debt service
which has resulted from a selling price which
exceeds the seller's purchase price by more than
the percentage increase in the "Consumer Price
Index for All Urban Consumers for the San
Francisco-Oakland Metropolitan Area, U.S. De-
partment of Labor" between the date of previous
purchase and the date of the current sale, plus
the cost of capital improvements or rehabilita-
tion work made or performed by the seller.

(B) The past history of increases in the rent
for the unit and the comparison of the rent for
the unit with rents for comparable units in the
same general area.

(D) Failure to perform ordinary repair, re-
placement and maintenance in compliance with
applicable State and local law.

(E) Any other such relevant factors as the
Board shall specify in rules and regulations.

3677

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.8.

(5) Determination of the Administra-
tive Law Judge: RAP Rental Units.

(A) RAP Rental Units in RAP Areas Des-
ignated Prior to July 1, 1977. The Adminis-
trative Law Judge shall make findings as to
whether or not the noticed or proposed rental
increase exceeds the rent increase limitations set
forth in Section 32.73 of the San Francisco Ad-
ministrative Code. In making such findings, the
Administrative Law Judge shall apply the rent
increase limitations set forth in Chapter 32 of
the San Francisco Administrative Code and all
rules and regulations promulgated pursuant
thereto. The Administrative Law Judge shall
consider the evidence presented at the hearing.
The burden of proof shall be on the landlord.

(B) RAP Rental Units in RAP Areas Des-
ignated On or After July 1, 1977. The Admin-
istrative Law Judge shall make findings with
respect to rent increases exceeding the limita-
tions as set forth in Section 37.3 of this Chapter.
In making such findings, the Administrative
Law Judge shall take into consideration the
factors set forth in Subsection (4) above and shall
consider evidence presented at the hearing. The
burden of proof is on the landlord.

(6) Findings of Fact. The Administrative
Law Judge shall make written findings of fact,
copies of which shall be mailed to the parties
within 30 days of the hearing.

( 7 ) Payment or Refund of Rents to Imple-
ment Arbitration Decision. Upon finding that
all or any portion of the rent increase is or is not
justified, or that any nonconforming rent in-
crease is null and void, the Administrative Law
Judge may order payment or refund of all or a
portion of that cumulative amount within 15
days of the mailing of the findings of fact or may
order the amount added to or offset against
future rents; provided, however, that any such
order shall be stayed if an appeal is timely filed
by the aggrieved party. The Administrative Law
Judge may order refunds of rent overpayments
resulting from rent increases which are null and
void for no more than the three-year period
preceding the month of the filing of a landlord or
tenant petition, plus the period between the

month of filing and the date of the Administra-
tive Law Judge's decision. In any case, calcula-
tion of rent overpayments and re-setting of the
lawful base rent shall be based on a determina-
tion of the validity of all rent increases imposed
since April 1, 1982, in accordance with Sections
37.3(b)(5) and 37.3(a)(2) above.

(8) Finality of Administrative Law
Judge's Decision. The decision of the Adminis-
trative Law Judge shall be final unless the
Board vacates his decision on appeal.

(f) Appeals.

(1) Time and Manner. Any appeal to the
Board from the determination of the Administra-
tive Law Judge must be made within 15 calendar
days of the mailing of the findings of fact unless
such time limit is extended by the Board upon a
showing of good cause. If the fifteenth day falls
on a Saturday, Sunday or legal holiday, the
appeal may be filed with the Board on the next
business day. The appeal shall be in writing and
must state why appellant believes there was
either error or abuse of discretion on the part of
the Administrative Law Judge. The filing of an
appeal will stay only that portion of any Admin-
istrative Law Judge's decision which permits
payment, refund, offsetting or adding rent.

(2) Record on Appeal. Upon receipt of an
appeal, the entire administrative record of the
matter, including the appeal, shall be filed with
the Board.

(3) Appeals. The Board shall, in its discre-
tion, hear appeals. In deciding whether or not to
hear a given appeal, the Board shall consider,
among other factors, fairness to the parties,
hardship to either party, and promoting the
policies and purposes of this Chapter, in addition
to any written comments submitted by the Ad-
ministrative Law Judge whose decision is being
challenged. The Board may also review other
material from the administrative record of the
matter as it deems necessary. A vote of three
members shall be required in order for an appeal
to be heard.

(4) Remand to Administrative Law
Judge Without Appeal Hearing. In those cases
where the Board is able to determine on the

Sec. 37.8.

San Francisco - Administrative Code

3678

basis of the documents before it that the Admin-
istrative Law Judge has eired, the Board may
remand the case for further hearing in accor-
dance with its instructions without conducting
an appeal hearing. Both parties shall be notified
as to the time of the re-hearing, which shall be
conducted within 30 days of remanding by the
Board. In those cases where the Board is able to
determine on the basis of the documents before it
that the Administrative Law Judge's findings
contain numerical or clerical inaccuracies, or
require clarification, the Board may continue the
hearing for purposes of re-referring the case to
said Administrative Law Judge in order to cor-
rect the findings.

(5) Time of Appeal Hearing; Notice to
Parties. Appeals accepted by the Board shall be
heard within 45 days of the filing of an appeal.
Within 30 days of the filing of an appeal, both
parties shall be notified in writing as to whether
or not the appeal has been accepted. If the appeal
has been accepted, the notice shall state the time
of the hearing and the nature of the hearing.
Such notice must be mailed at least 10 days prior
to the hearing.

(6) Appeal Hearing; Decision of the

Board. At the appeal hearing, both appellant
and respondent shall have an opportunity to
present oral testimony and written documents in
support of their positions. After such hearing
and after any further investigation which the
Board may deem necessary the Board may, upon
hearing the appeal, affirm, reverse or modify the
Administrative Law Judge's decision or may
remand the case for further hearing in accor-
dance with its findings. The Board's decision
must be rendered within 45 days of the hearing
and the parties must be notified of such decision.

(7) Notification of the Parties. In accor-
dance with item (6) above, parties shall receive
written notice of the decision. The notice shall
state that this decision is final.

(8) Effective Date of Appeal Decisions.

Appeal decisions are effective on the date mailed
to the parties; provided, however, that that por-
tion of any decision which orders payment, re-
fund, offsetting or adding rent shall become

effective 30 calendar days after it is mailed to the
parties unless a stay of execution is granted by a
court of competent jurisdiction.

(9) Limitation of Actions. A landlord or
tenant aggrieved by any decision of the Board
must seek judicial review within 90 calendar
days of the date of mailing of the decision.
(Amended by Ord. 435-86, App. 11/10/86; Ord.
278-89, App. 8/2/89; Ord. 127-91, App. 4/2/91;
Ord. 132-92, App. 5/21/92; Ord. 179-92, App.
6/22/92; Ord. 162-93, App. 5/28/93; Ord. 363-93,
App. 11/18/93; Ord. 179-98, App. 5/29/98; Ord.
347-99, File No. 992197, App. 12/30/99; Ord.
107-03, File No. 030689, App. 5/23/2003)

SEC. 37.8A. EXPEDITED HEARING
PROCEDURES.

As an alternative to the hearing procedures
set forth in Sections 37.7(g) and 37.8(e) above, a
landlord or tenant may, in certain cases, obtain
an expedited hearing and final order with the
written consent of all parties. This Section con-
tains the exclusive grounds and procedures for
such hearings.

(a) Applicability. A tenant or landlord may
seek an expedited hearing for the following peti-
tions only:

(1) Any landlord capital improvement peti-
tion where the proposed increase for certified
capital improvement costs does not exceed the
greater of 10 percent or $30 of a tenant's base
rent and the parties stipulate to the cost of the
capital improvements;

(2) Any tenant petition alleging decreased
housing services with a past value not exceeding
$1,000 as of the date the petition is filed;

(3) Any tenant petition alleging the landlord's
failure to repair and maintain the premises as
required by state or local law;

(4) Any tenant petition alleging unlawful
rent increases where the parties stipulate to the
tenant's rent history and the rent overpayments
do not exceed a total of $1,000 as of the date the
petition is filed;

(5) Any petition concerning jurisdictional
questions where the parties stipulate to the
relevant facts.

3679

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.8B.

(b) Hearing Procedures. The petition ap-
plication procedures of Section 37.7(f) and Sec-
tion 37.8(c) and (d) apply to petitions for expe-
dited hearings. The hearings shall be conducted
according to the following procedures:

(1) Time of Hearing. The hearing must be
held within 21 days of the filing of the written
consent of all the parties. The level of housing
services provided to tenants' rental units shall
not be decreased during the period between the
filing of the petition and the conclusion of the
hearing.

(2) Consolidation. To the greatest extent
possible, and only with the consent of the par-
ties, hearings with respect to a given building
shall be consolidated.

(3) Conduct of Hearing. The hearing shall
be conducted by an Administrative Law Judge
designated by the Board. Both parties may offer
such documents, testimony, written declarations
or other evidence as may be pertinent to the
proceedings. Stipulations of the parties as re-
quired under Section 37.8A(b)(l), (b)(4) and (b)(5)
shall be required as evidence. Burden of proof
requirements set forth in Sections 37.7 and 37.8
are applicable to the hearing categories in Sec-
tion 37.8A(b) above. No record of the hearing
shall be maintained for any purpose.

(4) Order of the Administrative Law
Judge. Based upon all criteria set forth in
Sections 37.7(4) and 37.8(e)(4) governing the
petition, the Administrative Law Judge shall
make a written order no later than 10 days after
the hearing. The Administrative Law Judge shall
make no findings of fact. The Administrative
Law Judge shall order payment or refund of
amounts owing to a party or parties, if amounts
are owed, within a period of time not to exceed 45
days.

(5) Stay of Order. The Administrative Law
Judge's order shall be stayed for 15 days from
the date of issuance. During this period, either
party may lodge a written objection to the order
with the Board. If the Board receives such objec-
tion within this period, the order is automati-
cally dissolved and the petitioning party may

refile the petition for hearing under any other
appropriate hearing procedure set forth in this
chapter.

(6) Finality of Administrative Law
Judge's Order. If no objection to the Adminis-
trative Law Judge's order is made pursuant to
Subsection (c)(5) above, the order becomes final.
The order is not subject to appeal to the Board
under Section 37.8(f) nor is it subject to judicial
review pursuant to Section 37.8(f)(9). (Added by
Ord. 133-92, App. 5/21/92; amended by Ord.
347-99, File No. 992197, App. 12/30/99)

SEC. 37.8B. EXPEDITED HEARING AND
APPEAL PROCEDURES FOR CAPITAL
IMPROVEMENTS RESULTING FROM
SEISMIC WORK ON UNREINFORCED
MASONRY BUILDINGS PURSUANT TO
BUILDING CODE CHAPTERS 16B AND
16C WHERE LANDLORDS PERFORMED
THE WORK WITH A UMB BOND LOAN.

This section contains the exclusive proce-
dures for all hearings concerning certification of
the above-described capital improvements. Land-
lords who perform such work without a UMB
bond loan are subject to the capital improvement
certification procedures set forth in Section 37.7
above.

(a) Requirements for Certification. The

landlord must have completed the capital im-
provements in compliance with the require-
ments of Building Code Chapters 16A and 16C.
The certification requirements of Section 37.7(b)(2)
and (b)(3) are also applicable.

(b) Amortization and Cost Allocation;
Interest. Costs shall be equally allocated to each
unit and amortized over a 20-year period or the
life of any loan acquired for the capital improve-
ments, whichever is longer. Interest shall be
limited to the actual interest rate charged on the
loan and in no event shall exceed 10 percent per
year.

(c) Eligible Items; Costs. Only those items
required in order to comply with Building Code
Chapters 16A and 16C may be certified. The
allowable cost of such items may not exceed the
costs set forth in the Mayor's Office of Economic

Sec. 37.8B.

San Francisco - Administrative Code

3680

Planning and Development's publication of esti-
mated cost ranges for bolts plus retrofitting by
building prototype and/or categories of eligible
construction activities.

(d) Hearing Procedures. The application
procedures of Section 37.7(f) apply to petitions
for these expedited capital improvement hear-
ings; provided, however, that the landlord shall
pay no filing fee since the Board will not hire an
estimator. The hearings shall be conducted ac-
cording to the following conducted according to
the following procedures:

( 1 ) Time of Hearing; Consolidation; Con-
duct of Hearing. The hearing must be held
within 21 days of the filing of the application.
The consolidation and hearing conduct proce-
dures of Section 37.7(g)(2) and (g)(3) apply

(2) Determination of Administrative Law
Judge. In accordance with the requirements of
this section, the Administrative Law Judge shall
make findings as to whether or not the proposed
rent increases are justified based upon the fol-
lowing considerations:

(A) The application and its supporting docu-
mentation;

(B) Evidence presented at the hearing es-
tablishing both the extent and the cost of the
work performed; and

(D) Tenant objections that the work has not
been completed; and

(E) Any other such relevant factors as the
Board shall specify in rules and regulations.

(3) Findings of Fact; Effect of Decision.
The Administrative Law Judge shall make writ-
ten findings of fact, copies of which shall be
mailed within 21 days of the hearing. The deci-
sion of the Administrative Law Judge is final
unless the Board vacates it on appeal.

(e) Appeals. Either party may appeal the
Administrative Law Judge's decisions in accor-
dance with the requirements of Section 37.8(f)(1),
(f)(2) and (f)(3). The Board shall decide whether
or not to accept an appeal within 21 days.

(1) Time of Appeal Hearing; Notice to
Parties; Record; Conduct of Hearing. The
appeal procedures of Section 37.8(f)(5), (f)(6).

(D(7), (f)(8) and (f)(9) apply; provided, however,
that the Board's decision shall be rendered within
20 days of the hearing.

(2) Rent Increases. A landlord may not
impose any rent increase approved by the Board
on appeal without at least 60 days' notice to the
tenants. (Added by Ord. 221-92, App. 7/14/92;
amended by Ord. 347-99, File No. 992197, App.
12/30/99; Ord. 2-03, File No. 020716, App. 1/21/
2003)

SEC. 37.8C. TEMPORARY
MORATORIUM ON RENT BOARD
PROCESSING OR APPROVAL OF
LANDLORD PETITIONS FOR
CERTIFICATION AND PASSTHROUGH
OF NON-SEISMIC CAPITAL
IMPROVEMENT, REHABILITATION AND
ENERGY CONSERVATION COSTS TO
TENANTS, DURING PENDENCY OF THE
SUPERIOR COURT PRELIMINARY
INJUNCTION STAYING
IMPLEMENTATION OF NOVEMBER 2000
PROPOSITION H.

The Board, Administrative Law Judges and
other Board staff, are prohibited from processing
or approving landlord petitions for certification
and passthrough of capital improvement, reha-
bilitation and energy conservation costs to ten-
ants, for a temporary moratorium period com-
mencing on [the effective date of this ordinance]
and continuing until the San Francisco Superior
Court dissolves its preliminary injunction stay-
ing the implementation of November 2000 Propo-
sition H (entered December 20, 2000, in Quigg v.
City and County of San Francisco, et ah, San
Francisco Superior Court Case No. 316928), ex-
cept that petitions which seek only certification
and passthrough of seismic retrofit work shall
not be affected by this moratorium. This mora-
torium applies to petitions pending as of the
effective date of this ordinance and to any land-
lord petitions filed during the moratorium,
whether based on Sections 37.3(a)(3), 37.7, and/or
37.8A. (Added by Ord. 29-01, File No. 010060,
App. 3/2/2001)

3681

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.9.

SEC. 37.9. EVICTIONS.

Notwithstanding Section 37.3, this Section
shall apply as of August 24, 1980, to all landlords
and tenants of rental units as defined in Section

37.2(r).

(a) A landlord shall not endeavor to recover
possession of a rental unit unless:

(1) The tenant:

(A) Has failed to pay the rent to which the
landlord is lawfully entitled under the oral or
written agreement between the tenant and land-
lord:

(i) Except that a tenant's nonpayment of a
charge prohibited by Section 919.1 of the Police
Code shall not constitute a failure to pay rent;
and

(ii) Except that, commencing August 10,
2001, to and including February 10, 2003, a
landlord shall not endeavor to recover or recover
possession of a rental unit for failure of a tenant
to pay that portion of rent attributable to a
capital improvement passthrough certified pur-
suant to a decision issued after April 10, 2000,
where the capital improvement passthrough pe-
tition was filed prior to August 10, 2001, and a
landlord shall not impose any late fee(s) upon
the tenant for such non-payment of capital im-
provements costs; or

(B) Habitually pays the rent late; or

(2) The tenant has violated a lawful obliga-
tion or covenant of tenancy other than the obli-
gation to surrender possession upon proper no-
tice or other than an obligation to pay a charge
prohibited by Police Code Section 919.1, and
failure to cure such violation after having re-
ceived written notice thereof from the landlord.

(A) Provided that notwithstanding any lease
provision to the contrary, a landlord shall not
endeavor to recover possession of a rental unit as
a result of subletting of the rental unit by the
tenant if the landlord has unreasonably with-
held the right to sublet following a written re-
quest by the tenant, so long as the tenant con-

tinues to reside in the rental unit and the sublet
constitutes a one-for-one replacement of the de-
parting tenant(s). If the landlord fails to respond
to the tenant in writing within fourteen (14) days
of receipt of the tenant's written request, the
tenant's request shall be deemed approved by
the landlord.

(B) Provided further that where a rental
agreement or lease provision limits the number
of occupants or limits or prohibits subletting or
assignment, a landlord shall not endeavor to
recover possession of a rental unit as a result of
the addition to the unit of a tenant's child,
parent, grandchild, ^p-andparent, brother or sis-
ter, or the spouse or domestic partner (as defined
in Administrative Code Sections 62.1 through
62.8) of such relatives, or as a result of the
addition of the spouse or domestic partner of a
tenant, so long as the maximum number of
occupants stated in Section 37.9(a)(2)(B)(i) and
(ii) is not exceeded, if the landlord has unreason-
ably refused a written request by the tenant to
add such occupant(s) to the unit. If the landlord
fails to respond to the tenant in writing within
fourteen (14) days of receipt of the tenant's
written request, the tenant's request shall be
deemed approved b}^ the landlord. A landlord's
reasonable refusal of the tenant's written re-
quest may not be based on the proposed addi-
tional occupant's lack of creditworthiness, if that
person will not be legally obligated to pay some
or all of the rent to the landlord. A landlord's
reasonable refusal of the tenant's written re-
quest may be based on, but is not limited to, the
ground that the total number of occupants in a
unit exceeds (or with the proposed additional
occupant(s) would exceed) the lesser of (i) or (ii):

(i) Two persons in a studio unit, three per-
sons in a one-bedroom unit, four persons in a
two-bedroom unit, six persons in a three-bed-
room unit, or eight persons in a four-bedroom
unit; or

(ii) The maximum number permitted in the
unit under state law and/or other local codes
such as the Building, Fire, Housing and Plan-
ning Codes; or

Supp. No. 4, January 2007

Sec. 37.9.

San Francisco - Administrative Code

3682

(3) The tenant is committing or permitting
to exist a nuisance in, or is causing substantial
damage to, the rental unit, or is creating a
substantial interference with the comfort, safety
or enjoyment of the landlord or tenants in the
building, and the nature of such nuisance, dam-
age or interference is specifically stated by the
landlord in writing as required by Section 37.9(c);
or

(4) The tenant is using or permitting a
rental unit to be used for any illegal purpose; or

(5) The tenant, who had an oral or written
agreement with the landlord which has termi-
nated, has refused after written request or de-
mand by the landlord to execute a written exten-
sion or renewal thereof for a further term of like
duration and under such terms which are mate-
rially the same as in the previous agreement;
provided, that such terms do not conflict with
any of the provisions of this Chapter; or

(6) The tenant has, after written notice to
cease, refused the landlord access to the rental
unit as required by State or local law; or

(7) The tenant holding at the end of the
term of the oral or written agreement is a sub-
tenant not approved by the landlord; or

(8) The landlord seeks to recover possession
in good faith, without ulterior reasons and with
honest intent:

(i) For the landlord's use or occupancy as
his or her principal residence for a period of at
least 36 continuous months;

(ii) For the use or occupancy of the landlord's
grandparents, grandchildren, parents, children,
brother or sister, or the landlord's spouse, or the
spouses of such relations, as their principal place
of residency for a period of at least 36 months, in
the same building in which the landlord resides
as his or her principal place of residency, or in a
building in which the landlord is simultaneously
seeking possession of a rental unit under Section
37.9(a)(8)(i). For purposes of this Section
37.9(a)(8)(ii), the term spouse shall include do-
mestic partners as defined in San Francisco
Administrative Code Sections 62.1 through 62.8.

(iii) For purposes of this Section 37.9(a)(8)
only, as to landlords who become owners of
record of the rental unit on or before February
21, 1991, the term "landlord" shall be defined as
an owner of record of at least 10 percent interest
in the property or, for Section 37.9(a)(8)(i) only,
two individuals registered as domestic partners
as defined in San Francisco Administrative Code
Sections 62.1 through 62.8 whose combined own-
ership of record is at least 10 percent. For
purposes of this Section 37.9(a)(8) only, as to
landlords who become owners of record of the
rental unit after February 21, 1991, the term
"landlord" shall be defined as an owner of record
of at least 25 percent interest in the property or,
for Section 37.9(a)(8)(i) only, two individuals reg-
istered as domestic partners as defined in San
Francisco Administrative Code Sections 62.1
through 62.8 whose combined ownership of record
is at least 25 percent.

(iv) A landlord may not recover possession
under this Section 37.9(a)(8) if a comparable unit
owned by the landlord is already vacant and is
available, or if such a unit becomes vacant and
available before the recovery of possession of the
unit. If a comparable unit does become vacant
and available before the recovery of possession,
the landlord shall rescind the notice to vacate
and dismiss any action filed to recover posses-
sion of the premises. Provided further, if a non-
comparable unit becomes available before the
recovery of possession, the landlord shall offer
that unit to the tenant at a rent based on the
rent that the tenant is paying, with upward or
downward adjustments allowed based upon the
condition, size, and other amenities of the re-
placement unit. Disputes concerning the initial
rent for the replacement unit shall be deter-
mined by the Rent Board. It shall be evidence of
a lack of good faith if a landlord times the service
of the notice, or the filing of an action to recover
possession, so as to avoid moving into a compa-
rable unit, or to avoid offering a tenant a replace-
ment unit.

(v) It shall be rebuttably presumed that the
landlord has not acted in good faith if the land-
lord or relative for whom the tenant was evicted
does not move into the rental unit within three

Supp. No. 4, January 2007

3683

Residential Rent Stabilization and Arbitration Ordinance

Sec.37.9.

months and occupy said unit as that person's
principal residence for a minimum of 36 continu-
ous months.

(vi) Once a landlord has successfully recov-
ered possession of a rental unit pursuant to
Section 37.9(a)(8)(i), then no other current or
future landlords may recover possession of any
other rental unit in the building under Section
37.9(a)(8)(i). It is the intention of this Section
that only one specific unit per building may be
used for such occupancy under Section 37.9(a)(8)(i)
and that once a unit is used for such occupancy,
all future occupancies under Section 37.9(a)(8)(i)
must be of that same unit, provided that a
landlord may file a petition with the Rent Board,
or at the landlord's option, commence eviction
proceedings, claiming that disability or other
similar hardship prevents him or her from occu-
pying a unit which was previously occupied by
the landlord.

(vii) If any provision or clause of this amend-
ment to Section 37.9(a)(8) or the application
thereof to any person or circumstance is held to
be unconstitutional or to be otherwise invalid by
any court of competent jurisdiction, such inval-
idity shall not affect other chapter provisions,
and clauses of this Chapter are held to be sever-
able; or

(9) The landlord seeks to recover possession
in good faith in order to sell the unit in accor-
dance with a condominium conversion approved
under the San Francisco subdivision ordinance
and does so without ulterior reasons and with
honest intent; or

(10) The landlord seeks to recover posses-
sion in good faith in order to demolish or to
otherwise permanently remove the rental unit
from housing use and has obtained all the nec-
essary permits on or before the date upon which
notice to vacate is given, and does so without
ulterior reasons and with honest intent; pro-
vided that a landlord who seeks to recover pos-
session under this Section 37.9(a)(10) shall pay
relocation expenses as provided in Section 37. 9C
except that a landlord who seeks to demolish an
unreinforced masonry building pursuant to Build-
ing Code Chapters 16B and 16C must provide

the tenant with the relocation assistance speci-
fied in Section 37.9A(f) below prior to the tenant's
vacating the premises; or

(11) The landlord seeks in good faith to
remove temporarily the unit from housing use in
order to be able to carry out capital improve-
ments or rehabilitation work and has obtained
all the necessary permits on or before the date
upon which notice to vacate is given, and does so
without ulterior reasons and with honest intent.
Any tenant who vacates the unit under such
circumstances shall have the right to reoccupy
the unit at the prior rent adjusted in accordance
with the provisions of this Chapter. The tenant
will vacate the unit only for the minimum time
required to do the work. On or before the date
upon which notice to vacate is given, the land-
lord shall advise the tenant in writing that the
rehabilitation or capital improvement plans are
on file with the Central Permit Bureau of the
Department of Building Inspection and that ar-
rangements for reviewing such plans can be
made with the Central Permit Bureau. In addi-
tion to the above, no landlord shall endeavor to
recover possession of any unit subject to a RAP
loan as set forth in Section 37.2(m) of this
Chapter except as provided in Section 32.69 of
the San Francisco Administrative Code. The
tenant shall not be required to vacate pursuant
to this Section 37.9(a)(ll), for a period in excess
of three months; provided, however, that such
time period may be extended by the Board or its
Administrative Law Judges upon application by
the landlord. The Board shall adopt rules and
regulations to implement the application proce-
dure. Any landlord who seeks to recover posses-
sion under this Section 37.9(a)(ll) shall pay
relocation expenses as provided in Section 37.9C
or

(12) The landlord seeks to recover posses-
sion in good faith in order to carry out substan-
tial rehabilitation, as defined in Section 37.2(s),
and has obtained all the necessary permits on or
before the date upon which notice to vacate is
given, and does so without ulterior reasons and
with honest intent. Notwithstanding the above,
no landlord shall endeavor to recover possession
of any unit subject to a RAP loan as set forth in

Supp. No. 9, June 2007

Sec.37.9.

San Francisco - Administrative Code

3684

Section 37.2(m) of this Chapter except as pro-
vided in Section 32.69 of the San Francisco
Administrative Code; Any landlord who seeks to
recover possession under this Section 37.9(a)(12)
shall pay relocation expenses as provided in
Section 37.9C; or

(13) The landlord wishes to withdraw from
rent or lease all rental units within any detached
physical structure and, in addition, in the case of
any detached physical structure containing three
or fewer rental units, any other rental units on
the same lot, and complies in full with Section
37. 9A with respect to each such unit; provided,
however, that guestrooms or efficiency units within
a residential hotel, as defined in Section 50519 of
the Health and Safety Code, may not be with-
drawn from rent or lease if the residential hotel
has a permit of occupancy issued prior to Janu-
ary 1, 1990, and if the residential hotel did not
send a notice of intent to withdraw the units
from rent or lease (Administrative Code Section
37.9A(f), Government Code Section 7060.4(a))
that was delivered to the Rent Board prior to
January 1, 2004; or

(14) The landlord seeks in good faith to
temporarily recover possession of the unit solely
for the purpose of effecting lead remediation or
abatement work, as required by San Francisco
Health Code Articles 11 or 26. The tenant will
vacate the unit only for the minimum time
required to do the work. The relocation rights
and remedies, established by San Francisco Ad-
ministrative Code Chapter 72, including but not
limited to, the pajmient of financial relocation
assistance, shall apply to evictions under this
Section37.9(a)(14).

(15) The landlord seeks to recover posses-
sion in good faith in order to demolish or to
otherwise permanently remove the rental unit
from housing use in accordance with the terms of
a development agreement entered into by the
City under Chapter 56 of the San Francisco
Administrative Code.

(b) A landlord who resides in the same
rental unit with his or her tenant may evict said
tenant without just cause as required under
Section 37.9(a) above.

(c) A landlord shall not endeavor to recover
possession of a rental unit unless at least one of
the grounds enumerated in Section 37.9(a) or (b)
above is the landlord's dominant motive for re-
covering possession and unless the landlord in-
forms the tenant in writing on or before the date
upon which notice to vacate is given of the
grounds under which possession is sought and
that advice regarding the notice to vacate is
available from the Residential Rent Stabiliza-
tion and Arbitration Board, before endeavoring
to recover possession. A copy of all notices to
vacate except three-day notices to vacate or pay
rent and a copy of any additional written docu-
ments informing the tenant of the grounds under
which possession is sought shall be filed with the
Board within 10 days following service of the
notice to vacate. The District Attorney shall
determine whether the units set forth on the list
compiled in accordance with Section 37.6(k) are
still being occupied by the tenant who succeeded
the tenant upon whom the notice was served. In
cases where the District Attorney determines
that Section 37.9(a)(8) has been violated, the
District Attorney shall take whatever action he
deems appropriate under this Chapter or under
State law.

(d) No landlord may cause a tenant to quit
involuntarily or threaten to bring any action to
recover possession, or decrease any services, or
increase the rent, or take any other action where
the landlord's dominant motive is retaliation for
the tenant's exercise of any rights under the law.
Such retaliation shall be a defense to any action
to recover possession. In an action to recover
possession of a rental unit, proof of the exercise
by the tenant of rights under the law within six
months prior to the alleged act of retaliation
shall create a rebuttable presumption that the
landlord's act was retaliatory.

(e) It shall be unlawful for a landlord or any
other person who wilfully assists the landlord to
endeavor to recover possession or to evict a
tenant except as provided in Section 37.9(a) and
(b). Any person endeavoring to recover posses-
sion of a rental unit from a tenant or evicting a
tenant in a manner not provided for in Section
37.9(a) or (b) without having a substantial basis

Supp. No. 9, June 2007

3685

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.9

in fact for the eviction as provided for in Section
37.9(a) shall be guilty of a misdemeanor and
shall be subject, upon conviction, to the fines and
penalties set forth in Section 37.10A. Any waiver
by a tenant of rights under this Chapter except
as provided in Section 37.10A(g), shall be void as
contrary to public policy.

(f) Whenever a landlord wrongfully endeav-
ors to recover possession or recovers possession
of a rental unit in violation of Sections 37.9
and/or 37.10 as enacted herein, the tenant or
Board may institute a civil proceeding for injunc-
tive relief, money damages of not less than three
times actual damages, (including damages for
mental or emotional distress), and whatever
other relief the court deems appropriate. In the
case of an award of damages for mental or
emotional distress, said award shall only be
trebled if the trier of fact finds that the landlord
acted in knowing violation of or in reckless
disregard of Section 37.9 or 37. lOA herein. The
prevailing party shall be entitled to reasonable
attorney's fees and costs pursuant to order of the
court. The remedy available under this Section
37.9(f) shall be in addition to any other existing
remedies which may be available to the tenant or
the Board.

(g) The provisions of this Section 37.9 shall
apply to any rental unit as defined in Sections
37.2(r)(4)(A) and 37.2(r)(4)(B), including where a
notice to vacate/quit any such rental unit has
been served as of the effective date of this Ordi-
nance No. 250-98 but where any such rental unit
has not yet been vacated or an unlawful detainer
judgment has not been issued as of the effective
date of this Ordinance No. 250-98.

(h) With respect to rental units occupied by
recipients of tenant-based rental assistance, the
notice requirements of this Section 37.9 shall be
required in addition to any notice required as
part of the tenant-based rental assistance pro-
gram, including but not limited to the notice
required under 24 CFR Section 982.3 10(e)(2)(ii).

(i) The following additional provisions shall
apply to a landlord who seeks to recover a rental
unit by utilizing the grounds enumerated in
Section 37.9(a)(8):

(1) A landlord may not recover possession of
a unit from a tenant under Section 37.9(a)(8) if
the landlord has or receives notice, any time
before recovery of possession, that any tenant in
the rental unit:

(A) Is 60 years of age or older and has been
residing in the unit for 10 years or more; or

(B) Is disabled within the meaning of Sec-
tion 37.9(i)(l)(B)(i) and has been residing in the
unit for 10 years or more, or is catastrophically
ill within the meaning of Section 37.9(i)(l)(B)(ii)
and has been residing in the unit for five years or
more:

(i) A "disabled" tenant is defined for pur-
poses of this Section 37.9(i)(l)(B) as a person who
is disabled or blind within the meaning of the
federal Supplemental Security Income/Califor-
nia State Supplemental Program (SSI/SSP), and
who is determined by SSI/SSP to qualify for that
program or who satisfies such requirements
through any other method of determination as
approved by the Rent Board;

(ii) A "catastrophically ill" tenant is defined
for purposes of this Section 37.9(i)(l)(B) as a
person who is disabled as defined by Section
37.9(i)(l)(B)(i), and who is suffering from a life
threatening illness as certified by his or her
primary care physician.

(2) The foregoing provisions of Sections
37.9(i)(l)(A) and (B) shall not apply where there
is only one rental unit owned by the landlord in
the building, or where each of the rental units
owned by the landlord in the same building
where the landlord resides (except the unit actu-
ally occupied by the landlord) is occupied by a
tenant otherwise protected from eviction by Sec-
tions 37.9(i)(l)(A) or (B) and where the landlord's
qualified relative who will move into the unit
pursuant to Section 37.9(a)(8) is 60 yesors of age
or older.

(3) The provisions established by this Sec-
tion 37.9(i) include, but are not limited to, any
rental unit where a notice to vacate/quit has

Supp. No. 15, March 2008

Sec. 37.9

San Francisco - Administrative Code

3686

been served as of the date this amendment takes
effect but where the rental unit has not yet been
vacated or an unlawful detainer judgment has
not been issued.

(4) Within 30 days of personal service by
the landlord of a written request, or, at the
landlord's option, a notice of termination of ten-
ancy under Section 37.9(a)(8), the tenant must
submit a statement, with supporting evidence, to
the landlord if the tenant claims to be a member
of one of the classes protected by Section 37.9(i).
The written request or notice shall contain a
warning that a tenant's failure to submit a
statement within the 30 day period shall be
deemed an admission that the tenant is not
protected by Section 37.9(i). The landlord shall
file a copy of the request or notice with the Rent
Board within 10 days of service on the tenant. A
tenant's failure to submit a statement within the
30 day period shall be deemed an admission that
the tenant is not protected by Section 37.9(i). A
landlord may challenge a tenant's claim of pro-
tected status either by requesting a hearing with
the Rent Board or, at the landlord's option,
through commencement of eviction proceedings,
including service of a notice of termination of
tenancy. In the Rent Board hearing or the evic-
tion action, the tenant shall have the burden of
proof to show protected status. No civil or crimi-
nal liability under Section 37.9(e) or (f) shall be
imposed upon a landlord for either requesting or
challenging a tenant's claim of protected status.

(5) This Section 37.9(i) is severable from all
other sections and shall be of no force or effect if
any temporary moratorium on owner/relative
evictions adopted by the Board of Supervisors
after June 1, 1998 and before October 31, 1998
has been invalidated by the courts in a final
decision.

(j) Disclosure of Rights to Tenants Be-
fore and After Sale of Rental Units Subject
to Section 37.9.

(1) Disclosure to Tenants By Seller of

the Property. Before property containing rental
units subject to Section 37.9 may be sold, the
owner/seller shall disclose to tenants of the prop-

erty the rights of tenants during and after the
sale of the property. This disclosure shall be in
writing and shall include:

(A) A statement in bold type of at least 12
points that tenants can not be evicted or asked to
move solely because a property is being sold or
solely because a new owner has purchased that
property.

(B) A statement in bold type of at least 12
points that tenants cannot have their rent in-
creased above that permitted by Chapter 37
solely because a property is being sold or solely
because a new owner has purchased that prop-
erty

(C) A statement in bold type of at least 12
points that the rental agreements of tenants
cannot be materially changed solely because a
property is being sold or solely because a new
owner has purchased that property.

(D) A statement that the owner's right to
show units to prospective buyers is governed by
California Civil Code section 1954, including a
statement that tenants must receive notice as
provided by Section 1954, and a statement that a
showing must be conducted during normal busi-
ness hours unless the tenant consents to an
entry at another time.

(E) A statement that tenants are not re-
quired to complete or sign any estoppel certifi-
cates or estoppel agreements, except as required
by law or by that tenant's rental agreement. The
statement shall further inform tenants that ten-
ant rights may be affected by an estoppel certifi-
cate or agreement and that the tenants should
seek legal advice before completing or signing an
estoppel certificate or agreement.

(F) A statement that information on these
and other tenant's rights are available at the
San Francisco Rent Board, 25 Van Ness Ave, San
Francisco, California, and at the counseling tele-
phone number of the Rent Board and at its web
site.

(2) Disclosure to Tenants by Purchaser
of the Property. Within 30 days of acquiring
title to rental units subject to Section 37.9, the
new purchaser/owner shall disclose to tenants of

Supp. No. 15, March 2008

3686.1

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37. 9A.

the property the rights of tenants following this
sale of the property. This disclosure shall be in
writing and shall include:

(A) A statement in bold type of at least 12
points that tenants cannot be evicted or asked to
move solely because a new owner has purchased
that property.

(B) A statement in bold type of at least 12
points that tenants cannot have their rent in-
creased above that permitted by Chapter 37
solely because a new owner has purchased that
property.

(C) A statement in bold type of at least 12
points that the rental agreements of tenants
cannot be materially changed solely because a
new owner has purchased that property.

(D) A statement in bold type of at least 12
points that any tenants, sub-tenants or room-
mates who were lawful occupants at the time of
the sale remain lawful occupants.

(E) A statement in bold type of at least 12
points: that tenants' housing services as defined
in Section 37.2(r) first paragraph cannot be
changed or severed from the tenancy solely be-
cause a new owner has purchased that property;
and that tenants' housing services as defined in
Section 37.2(r) second paragraph that were sup-
plied in connection with the use or occupancy of
a unit at the time of sale (such as laundry rooms,
decks, or storage space) cannot be severed from
the tenancy by the new purchaser/owner without

just cause as required by Section 37.9(a).
(Amended by Ord. 7-87, App. 1/15/87; Ord. 30-91,
App. 1/22/91; Ord. 192-91, App. 5/31/91; Ord
221-92, App. 7/14/92; Ord. 405-96, App. 10/21/96
Ord. 482-97, App. 12/30/97; Ord. 239-98, App
7/17/98; Ord. 250-98, App. 7/31/98; Ord. 293-98
App. 10/2/98; amended by Proposition G, 11/3/98
Ord. 237-99, File No. 990168, Eff 8/30/99; Ord
347-99, File No. 992197, App. 12/30/99; Ord
348-99, File No. 991265, App. 12/30/99; Ord
135-01, File No. 010526, App. 7/6/2001; Ord
186-01, File No. 011497, App. 7/28/2001; Ord
23-02, File No. 020153, App. 2/22/2002; Ord
57-02, File No. 011575, App. 5/3/2002; Ord. 99-
04, File No. 031992, App. 6/4/2004; Ord. 282-04,
File No. 030667, App. 12/1/2004; Ord. 21-05, File
No. 041151, App. 1/21/2005; Amended by Propo-
sition H, App. 11/7/2006; Ord. 92-07, File No.
061217, App. 4/27/2007; Ord. 33-08, File No.
071522, App. 3/17/2008)

SEC. 37.9A. TENANT RIGHTS IN
CERTAIN DISPLACEMENTS UNDER
SECTION 37.9(a)(13).

This Section 37. 9A applies to certain tenant
displacements under Section 37.9(a)(13), as speci-
fied.

(a) Rent Allowed.

(1) Except as provided in Section 37.9A(a)(2)
below, any rental unit which a tenant vacates
after receiving a notice to quit rel5dng on Section
37.9(a)(13) (withdrawal of rental units from rent
or lease under the Elllis Act, California Govern-
ment Code Sections 7060 et seq.), if again offered
for rent or lease, must be offered and rented or
leased at a rent not j^eater than the lawful rent
in effect at the tirae the notice of intent to
withdraw rental units is filed with the Board,
plus annual rent increases available under this
Chapter 37.

(A) The provisions of Section 37.9A(a)(l)
apply to all tenancies commenced during either
of the following time periods:

(i) The five-year period after a notice of
intent to withdraw the rental units is filed with
the Board, whether or not the notice of intent is
rescinded or the withdrawal of the units is com-
pleted pursuant to that notice;

Supp. No. 15, March 2008

Sec. 37. 9A. San Francisco - Administrative Code 3686.2

(ii) The five-year period after the rental
units are withdrawn.

(B) This Section 37.9A(a)(l) shall prevail
over any conflicting provision of law authorizing
the landlord to establish the rental rate upon the
initial hiring of the unit.

(C) If it is asserted that the rent could have
been increased based on capital improvements,
rehabilitation or substantial rehabilitation, the
owner must petition the Rent Board pursuant to
the procedures of Section 37.7 of this Chapter.
No increase shall be allowed on account of any
expense incurred in connection with withdraw-
ing any unit from rent or lease.

(2) If a new tenancy was lawfully created in
a unit before January 1, 2003, following a lawful
withdrawal of the unit from rent or lease under
Section 37.9(a)(13), any subsequent new tenan-
cies for that rental unit are not subject to the
rent limitations in Section 37.9A(a)(l).

Supp. No. 15, March 2008

3687

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.9A

(b) Treatment of Replacement Units. If

one or more units covered by Subsection (a) is
demolished, and one or more new units qualify-
ing as rental units under this Chapter but for the
date on which they first receive a certificate of
final completion and occupancy are constructed
on the same property, and offered for rent or
lease within five years of the date the last of the
original units became vacant, the newly con-
structed units shall be offered at rents not greater
than those reasonably calculated to produce a
fair and reasonable return on the newly con-
structed units, notwithstanding Section 37.2(r)(5)
or any other provision of this Chapter. The
provisions of this Chapter shall thereafter apply.
The Board shall adopt rules for determining the
rents necessary to provide a fair and reasonable
return.

(c) Rights to Re-Rent. Any owner who
again offers for rent or lease any unit covered by
Subsection (a) shall first offer the unit for rent or
lease to the tenants or lessees displaced from the
unit as follows:

(1) If any tenant or lessee has advised the
owner in writing within 30 days of displacement
of his or her desire to consider an offer to renew
the tenancy and has furnished the owner with an
address to which that offer is to be directed, the
owner must make such an offer whenever the
unit is again offered for rent or lease within two
years of withdrawal. That tenant, lessee, or
former tenant or lessee may advise the owner at
any time of a change of address to which an offer
is to be directed.

(2) Notwithstanding Subsection (c)(1), if the
unit is offered for rent or lease within 10 years of
withdrawal, the owner shall notify the Rent
Board in writing of the intention to re-rent the
unit and make an offer to the tenant or lessee
whenever the tenant or lessee requests the offer
in writing within 30 days after the owner has
notified the City of an intention to re-rent the
unit. If the unit is offered for rent or lease more
than two j^ears after the date the unit was
withdrawn from rent or lease, the owner shall be
liable to any tenant or lessee who was displaced

for failure to comply with this Subsection (c)(2),
for punitive damages in an amount which does
not exceed the contract rent for six months.

(3) If any former tenant or lessee has re-
quested an offer to renew the tenancy, either
directly to the landlord or after notice from the
Rent Board, then the owner shall offer to rein-
stitute a rental agireement or lease at rents
permitted under Subsection (a). This offer shall
be deposited in the United States mail, by regis-
tered or certified mail with postage prepaid,
addressed to the displaced tenant or lessee at the
address furnished to the owner as provided by
the tenant and shall describe the terms of the
offer. The displaced tenant or lessee shall have
30 days from the deposit of the offer in the mail
to accept the offer by personal delivery of that
acceptance or by deposit of the acceptance in the
United States mail by registered or certified mail
with postage prepaid.

(4) If more than one tenant or lessee at-
tempts to accept the offer for a given unit, the
landlord shall notify^ each tenant or lessee so
accepting that other acceptances have been re-
ceived, and shall further advise each such tenant
or lessee of the names and addresses of the
others. If all such tenants or lessees do not
within 30 days thereafter agree and notify the
landlord of which tenant(s) or lessee(s) will reoc-
cupy the unit, the tenant(s) or lessee(s) who first
occupied the unit previously shall be entitled to
accept the landlord's offer. If more than one
eligible tenant or lessee initially occupied the
unit on the same date, then the first such tenant
or lessee to have ori^jinally sent notice accepting
the landlord's offer shall be entitled to occupy the
unit.

(d) Re-Rental Within Two Years. If a unit
covered by Subsection (a) is offered for rent or
lease within two years of the date of withdrawal:

(1) The owner shall be liable to any tenant
or lessee who was displaced from the property for
actual and exemplary damages. Any action by a
tenant or lessee pursuant to this paragraph shall
be brought within three years of withdrawal of
the unit from rent or lease. However, nothing in

Supp. No. 1, September 2006

Sec. 37.9A

San Francisco - Administrative Code

3688

this paragraph precludes a tenant from pursuing
any alternative remedy available under the law.

(2) The City may institute a civil proceeding
against the owner who has again offered the unit
for rent or lease, for exemplary damages for
displacement of tenants or lessees. Any action by
the City pursuant to this paragraph shall be
brought within three years of the withdrawal of
the unit from rent or lease.

(e) Relocation Payments to Tenants.

(1) Before August 10, 2004, Low Income,
Elderly or Disabled. Where a landlord seeks
eviction based upon Section 37.9(a)(13), and the
notice of intent to withdraw rental units was
filed with the Board before August 10, 2004, the
relocation payments described in this Subsection
37.9A(e)(l) shall be limited to tenants who are
members of lower income households, who are
elderly, or who are disabled, as defined below.

(A) Tenants who are members of lower in-
come households, as defined by Section 50079.5
of the California Health and Safety Code, and
who receive a notice to quit based upon Section
37.9(a)(13), in addition to all rights under any
other provisions of law, shall be entitled to re-
ceive $4,500, $2,250 of which shall be paid within
fifteen (15) calendar days of the landlord's re-
ceipt of written notice from the tenants of their
entitlement to the relocation pajmient, and $2,250
of which shall be paid when the tenants vacate
the unit.

(B) With respect to Subsection 37.9A(e)(l)(A),
the Mayor's Office of Housing or its successor
agency shall annually determine the income
limits for lower income households, adjusted for
household size.

(C) Notwithstanding Subsection 37.9A(e)
(1)(A), and irrespective of the size of the unit, any
tenant who receives a notice to quit under Sec-
tion 37.9(a)(13) and who, at the time such notice
is served, is 62 years of age or older, or who is
disabled within the meaning of Section 12955.3
of the California Government Code, shall be
entitled to receive $3,000, $1,500 of which shall
be paid within fifteen (15) calendar days of the
landlord's receipt of written notice from the

tenant of entitlement to the relocation payment,
and $1,500 of which shall be paid when the
tenant vacates the unit.

(D) The payments due pursuant to this Sub-
section 37.9A(e)(l) for any unit which is occupied
by more than one tenant shall be divided equally
among all the occupjdng tenants, excluding those
tenants who are separately entitled to payments
under Subsection 37.9A(e)(l)(C) above.

(2) On August 10, 2004 and until (Effec-
tive Date of Ordinance Amendments.) Where
a landlord seeks eviction based upon Section
37.9(a)(13) and either (i) the notice of intent to
withdraw rental units is filed with the Board on
or after August 10, 2004 through (the effective
date of ordinance amendments), or (ii) the notice
of intent to withdraw rental units was filed with
the Board prior to August 10, 2004 but the
tenant still resided in the unit as of August 10,
2004, relocation payments shall be paid to the
tenants as follows:

(A) Tenants who are members of lower in-
come households, as defined by Section 50079.5
of the California Health and Safety Code, shall
be entitled to receive $4,500, $2,250 of which
shall be paid within fifteen (15) calendar days of
the landlord's receipt of written notice from the
tenants of their entitlement to the relocation
payment, and $2,250 of which shall be paid when
the tenants vacate the unit.

(B) Subject to Subsections 37.9A(e)(2)(C) and
(D) below, tenants who are not members of lower
income households, as defined by Section 50079.5
of the California Health and Safety Code, shall
be entitled to receive $4,500, which shall be paid
when the tenant vacates the unit;

(C) In the event there are more than three
tenants in a unit, the total relocation pajnnent
shall be $13,500.00, which shall be divided equally
by the number of tenants in the unit;

(D) Notwithstanding Subsection
37.9A(e)(2)(A) and (B), any tenant who, at the
time the notice of intent to withdraw rental units
is filed with the Board, is 62 years of age or older,
or who is disabled within the meaning of Section
12955.3 of the California Government Code, shall
be entitled to receive an additional payment of

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3689

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Sec. 37.9A

$3,000.00, $1,500.00 of which shall be paid within
fifteen (15) calendar days of the landlord's re-
ceipt of written notice from the tenant of entitle-
ment to the relocation payment, and $1,500.00 of
which shall be paid when the tenant vacates the
unit,

(3) On or After (Effective Date of Ordi-
nance Amendments). Where a landlord seeks
eviction based upon Section 37.9(a)(13), and the
notice of intent to withdraw rental units is filed
with the Board on or after (effective date of
ordinance amendments), relocation payments shall
be paid to the tenants as follows:

(A) Subject to Subsections 37.9(e)(3)(B)(C)
and (D) below, each tenant shall be entitled to
receive $4,500.00, one-half of which shall be paid
at the time of the service of the notice of termi-
nation of tenancy, and one-half of which shall be
paid when the tenant vacates the unit;

(B) In the event there are more than three
tenants in a unit, the total relocation payment
shall be $13,500.00, which shall be divided equally
by the number of tenants in the unit; and

(C) Notwithstanding Subsections 37.9A(e)
(3)(A) and (B), any tenant who, at the time the
notice of intent to withdraw rental units is filed
with the Board, is 62 years of age or older, or who
is disabled within the meaning of Section 12955.3
of the California Government Code, shall be
entitled to receive an additional payment of
$3,000.00, $1,500.00 of which shall be paid within
fifteen (15) calendar days of the landlord's re-
ceipt of written notice from the tenant of entitle-
ment to the relocation payment, and $1,500.00 of
which shall be paid when the tenant vacates the
unit.

(D) Commencing March 1, 2005, the reloca-
tion payments specified in 37.9A(e)(3)(A) and (B)
and (C) shall increase annually at the rate of
increase in the "rent of primary residence" ex-
penditure category of the Consumer Price Index
(CPI) for All Urban Consumers in the San Fran-
cisco-Oakland-San Jose Region for the preceding
calendar year, as that data is made available by
the United States Department of Labor and
published by the Board.

(4) Any notice to quit pursuant to Section
37.9(a)(13) shall notify the tenant or tenants
concerned of the right to receive payment under
Subsections 37.9A(e)(l) or (2) or (3) and the
amount of pa5niient which the landlord believes
to be due.

(f) Notice to Rent Board; Recordation
of Notice; Effective Date of Withdrawal.

(1) Any owner who intends to withdraw
from rent or lease any rental unit shall notify the
Rent Board in writing of said intention. Said
notice shall contain statements, under penalty of
pejrjury, providing information on the number of
residential units, the address or location of those
units, the name or names of the tenants or
lessees of the units, and the rent applicable to
each residential rental unit. Said notice shall be
signed by all owners of record of the property
under penalty of perjury and shall include a
certification that actions have been initiated as
required by law to terminate existing tenancies
through service of a notice of termination of
tenancy. The notice must be served by certified
mail or any other manner authorized by law
prior to delivery to the Rent BoEird of the notice
of intent to withdravv^ the rental units. Informa-
tion respecting the name or names of the ten-
ants, the rent applicable to any unit, or the total
number of units, is confidential and shall be
treated as confidential information by the City
for purposes of the Information Practices Act of
1977, as contained in Chapter 1 (commencing
with Section 1798) of Title 1.8 of Part 4 of
Division 3 of the Civil Code. The City shall, to the
extent required by the preceding sentence, be
considered an "agency," as defined by Subdivi-
sion (b) of Section 1798.3 of the Civil Code.

(2) Prior to the effective date of withdrawal
of rental units under this Section, the owner
shall cause to be recorded with the County
Recorder a memorandum of the notice required
by Subsection (f)(1) summarizing its provisions,
other than the confidential provisions, in sub-
stantially the following form:

Memorandum of Notice

Regarding Withdrawal of

Rental Unit From Rent or Lease

This memorandum evidences that the under-
signed, as the owner(s) of the property de-

Supp. No. 1, Septemiber 2006

Sec. 37.9A

San Francisco - Administrative Code

3690

scribed in Exhibit A attached, has filed a
notice, whose contents are certified under pen-
alty of perjury, stating the intent to withdraw
from rent or lease all units at said property,
pursuant to San Francisco Administrative Code
Section 37. 9A and the ElHs Act (California
Government Code Sections 7060 et seq.).

(Signature)

(3) For a notice of intent to withdraw rental
units filled with the Rent Board on or before
December 31, 1999, the date on which the units
are withdrawn from rent or lease for purposes of
this Chapter and the Ellis Act is 60 days from the
delivery in person or by first-class mail of the
Subsection (f)(1) notice of intent to the Rent
Board.

(4) For a notice of intent to withdraw rental
units filed with the Rent Board on or after
January 1, 2000, the date on which the units are
withdrawn from rent or lease for purposes of this
Chapter and the Ellis Act is 120 days from the
delivery in person or by first-class mail of the
Subsection (f)(1) notice of intent to the Rent
Board. Except that, if the tenant or lessee is at
least 62 years of age or disabled as defined in
Government Code § 12955.3, and has lived in his
or her unit for at least one year prior to the date
of delivery to the Rent Board of the Subsection
(f)(1) notice of intent to withdraw, then the date
of withdrawal of the unit of that tenant or lessee
shall be extended to one year after the date of
delivery of that notice to the Rent Board, pro-
vided that the tenant or lessee gives written
notice of his or her entitlement to an extension of
the date of withdrawal to the owner within 60
days of the date of delivery to the Rent Board of
the Subsection (D(l) notice of intent to withdraw.
In that situation, the following provisions shall
apply:

(A) The tenancy shall be continued on the
same terms and conditions as existed on the date
of delivery to the Rent Board of the notice of
intent to withdraw, subject to any adjustments
otherwise available under Administrative Code
Chapter 37.

(B) No party shall be relieved of the duty to
perform any obligation under the lease or rental
agreement.

(C) The owner may elect to extend the date
of withdrawal on any other units up to one year
after date of delivery to the Rent Board of the
Subsection (0(1) notice of intent to withdraw,
subject to Subsections (f)(4)(A) and (B).

(D) Within 30 days of the notification by the
tenant or lessee to the owner of his or her
entitlement to an extension of the date of with-
drawal, the owner shall give written notice to the
Rent Board of the claim that the tenant or lessee
is entitled to stay in their unit for one year after
the date of delivery to the Rent Board of the
Subsection (f)(1) notice of intent to withdraw.

(E) Within 90 days of the date of delivery to
the Rent Board of the notice of intent to with-
draw, the owner shall give written notice to the
Rent Board and the affected tenant or lessee of
the following:

(i) Whether or not the owner disputes the
tenant's claim of extension;

(ii) The new date of withdrawal under Sec-
tion 37.9A(f)(4)(C), if the owner does not dispute
the tenant's claim of extension; and,

(iii) Whether or not the owner elects to
extend the date of withdrawal to other units on
the property.

(5) Within 15 days of delivery of a Subsec-
tion (f)(1) notice of intent to the Rent Board, the
owner shall provide notice to any tenant or
lessee to be displaced of the following:

(A) That the Rent Board has been notified
pursuant to Subsection (f)(1);

(B) That the notice to the Rent Board speci-
fied the name and the amount of rent paid by the
tenant or lessee as an occupant of the rental
unit;

(D) The tenant's or lessee's rights to reoccu-
pancy and to relocation assistance under Subsec-
tions 37.9A(c) and (e); and

Supp. No. 1, September 2006

3691

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.9B.

(E) The rights of quahfied elderly or dis-
abled tenants as described under Subsection
(f)(4), to extend their tenancy to one year after
the date of delivery to the Rent Board of the
Subsection (f)(1) notice of intent to withdraw.

(6) Within 30 days after the effective date of
withdrawal of rental units under this Section
37. 9A, the Rent Board shall record a notice of
constraints with the County Recorder which de-
scribes the property and the dates of applicable
restrictions on the property under this Section.

(g) Successor Owners. The provisions of
this Section 37. 9A shall apply to the owner of a
rental unit at the time displacement of a tenant
or tenants is initiated and to any successor in
interest of the owner, subject to the provisions of
Chapter 12.75 of Division 7 of Title 1 of the
California Government Code (Sections 7060 et
seq.).

(h) Reports Required.

(1) Not later than the last day of the third
and sixth calendar months following the month
in which notice is given to the Board under
Subsection (f)(1), and thereafter not later than
December 31st of each calendar year for a period
of five years, beginning with the year in which
the six-month notice is given, the owner of any
property which contains or formerly contained
one or more rental units which a tenant or
tenants vacated pursuant to Section 37.9(a)(13)
shall notify the Board, in writing, under penalty
of perjury, for each such unit:

(A) Whether the unit has been demolished;

(B) If the unit has not been demolished,
whether it is in use;

(D) If it is in residential use, the date the
tenancy began, the name of the tenant(s), and
the amount of rent charged.

If the unit has been demolished, and one or
more new units constructed on the lot, the owner
shall furnish the information required by items
(B), (C) and (D) for each new unit. The Board
shall maintain a record of the notices received

under Subsection (i) and all notices received
under this Section for each unit subject to this
reporting requirement.

(2) The Board shall notify each person who
is reported as having become a tenant in a
vacated or new unit subject to the reporting
requirements of Subsection (h)(1) that it main-
tains the records described in Subsection (h)(1),
and that the rent of the unit may be restricted
pursuant to Subsection (a).

(3) The Board shall maintain a register of
all rental units withdrawn from rent or lease
under the Ellis Act and the rent applicable to
each unit at the time of withdrawal. The Board
shall inform tenants displaced from units with-
drawn from rent or lease at the address provided
by the tenant, when the owner notifies the Board
that the unit or replacement unit will again be
offered for rent or lease within ten yeairs of the
date of withdrawal.

(4) The Board may investigate whether a
rental unit that was withdrawn from rent or
lease has been again offered for rent or lease,
and whether the owner has complied with the
provisions of this Section.

(i) This Section 37.9Ais enacted principally
to exercise specific authority provided for by
Chapter 12.75 of Division 7 of Title 1 of the
California Government Code, originally enacted
by Stats. 1985, Ch. 1509, Section 1 (the Elhs Act,
California Government Code Sections 7060 et
seq.). In the case of any amendraent to Chapter
12.75 or any other provision of State law which
amendment is inconsistent with this Section,
this Section shall be deemed to be amended to be
consistent with State law, and to the extent it
cannot be so amended shall be interpreted to be
effective as previously adopted to the maximum
extent possible. (Added by Ord. 193-86, App.
5/30/86; amended by Ord. 320-94, App. 9/15/94;
Ord. 348-99, File No. 991265, App. 12/30/99; Ord.
5-00, File No. 992236, App. 1/14/2000; Ord. 91-
03„ File No. 030325, App. 5/16/2003; Ord. 21-05,
File No. 041151, App. 1/21/2005)

SEC. 37.9B. TENANT RIGHTS IN
EVICTIONS UNDER SECTION 37.9(a)(8).

(a) Any rental unit which a tenant vacates
after receiving a notice to quit based on Section
37.9(a)(8), and which is subsequently no longer

Supp. No. 4, January 2007

Sec. 37.9B.

San Francisco - Administrative Code

3692

occupied as a principal residence by the landlord
or the landlord's grandparent, parent, child, grand-
child, brother, sister, or the landlord's spouse, or
the spouses of such relations must, if offered for
rent during the three-year period following ser-
vice of the notice to quit under Section 37.9(a)(8),
be rented in good faith at a rent not greater than
at which would have been the rent had the
tenant who had been required to vacate re-
mained in continuous occupancy and the rental
unit remained subject to this Chapter. If it is
asserted that a rent increase could have taken
place during the occupancy of the rental unit by
the landlord if the rental unit had been subjected
to this Chapter, the landlord shall bear the
burden of proving that the rent could have been
legally increased during the period. If it is as-
serted that the increase is based in whole or in
part upon any grounds other than that set forth
in Section 37.3(a)(1), the landlord must petition
the Rent Board pursuant to the procedures of
this Chapter. Displaced tenants shall be entitled
to participate in and present evidence at any
hearing held on such a petition. Tenants dis-
placed pursuant to Section 37.9(a)(8) shall make
all reasonable efforts to keep the Rent Board
apprised of their current address. The Rent
Board shall provide notice of any proceedings
before the Rent Board to the displaced tenant at
the last address provided by the tenant. No
increase shall be allowed on account of any
expense incurred in connection with the displace-
ment of the tenant.

(b) Any landlord who, within three years of
the date of service of the notice to quit, offers for
rent or lease any unit in which the possession
was recovered pursuant to Section 37.9(a)(8)
shall first offer the unit for rent or lease to the
tenants displaced in the same manner as pro-
vided for in Sections 37.9A(c) and (d).

(c) In addition to complying with the require-
ments of Section 37.9(a)(8), an owner who en-
deavors to recover possession under Section
37.9(a)(8) shall inform the tenant of the follow-
ing information in writing and file a copy with
the Rent Board within 10 days after service of

the notice to vacate, together with a copy of the
notice to vacate and proof of service upon the
tenant;

(1) The identity and percentage of owner-
ship of all persons holding a full or partial
percentage ownership in the property;

(2) The dates the percentages of ownership
were recorded;

(3) The name(s) of the landlord endeavoring
to recover possession and, if applicable, the
name(s) and relationship of the relative(s) for
whom possession is being sought and a descrip-
tion of the current residence of the landlord or
relative(s);

(4) A description of all residential proper-
ties owned, in whole or in part, by the landlord
and, if applicable, a description of all residential
properties owned, in whole or in part, by the
landlord's grandparent, parent, child, grand-
child, brother, or sister for whom possession is
being sought;

(5) The current rent for the unit and a
statement that the tenant has the right to re-
rent the unit at the same rent, as adjusted by
Section 37.9B(a) above;

(6) The contents of Section 37. 9B, by pro-
viding a copy of same; and

(7) The right the tenant(s) may have to
relocation costs and the amount of those reloca-
tion costs.

(d) The landlord shall pay relocation ex-
penses as provided in Section 37. 9C.

(e) Within 30 days after the effective date of
a written notice to vacate that is filed with the
Board under Section 37.9B(c) the Board shall
record a notice of constraints with the County
Recorder identifying each unit on the property
that is the subject of the Section 37.9B(c) notice
to vacate, stating the nature and dates of appli-
cable restrictions under Sections 37.9(a)(8) and
37. 9B. If a notice of constraints is recorded but
the tenant does not vacate the unit, the landlord
may apply to the Board for a rescission of the
recorded notice of constraints. (Added by Ord.
293-98, App. 10/2/98; amended by Ord. 57-02,
File No. 011575, App. 5/3/2002; Amended by
Proposition H, App. 11/7/2006)

Supp. No. 4, January 2007

3693

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.10A.

SEC. 37.9C. TENANTS RIGHTS TO
RELOCATION FOR NO-FAULT
EVICTIONS.

(a) Definitions.

(1) Covered No-Fault Eviction Notice, For
purposes of this section 37. 9C, a Covered No-
Fault Eviction Notice shall mean a notice to quit
based upon Section 37.9(a)(8), (10), (11), or (12).

(2) Eligible Tenant, For purposes of this
section 37. 9C, an Eligible Tenant shall mean any
authorized occupant of a rental unit, regardless
of age, who has resided in the unit for 12 or more
months.

(b) Each Eligible Tenant who receives a
Covered No-Fault Eviction Notice, in addition to
all rights under any other provision of law, shall
be entitled to receive relocation expenses from
the landlord, in the amounts specified in section
37.9C(e).

(c) On or before the date of service of a
Covered No-Fault Eviction Notice, the landlord
shall notify all occupant(s) in the unit in writing
of the right to receive payment under this section
37. 9C and the amount of that relocation and
shall provide a copy of section 37. 9C. Such noti-
fication shall include a statement describing the
additional relocation expenses available for Eli-
gible Tenants who are senior or disabled and for
households with children. The landlord shall file
a copy of this notification with the Rent Board
within 10 days after service of the notice, to-
gether with a copy of the notice to vacate and
proof of sendee upon the tenant.

(d) A landlord who pays relocation expenses
as required by this Section in conjunction with a
notice to quit need not pay relocation expenses
with any further notices to quit based upon the
same just cause under Section 37.9(a) for the
same unit that are served within 180 days of the
notice that included the required relocation pay-
ment. The relocation expenses continued herein
are separate from any security or other refund-
able deposits as defined in California Code Sec-
tion 1950.5. Further, payment or acceptance of
relocation expenses shall not operate as a waiver
of any rights a tenant may have under law.

(e) Relocation expenses shall be:

(1) Each Eligible Tenant receiving a Cov-
ered No-Fault Eviction Notice shall receive
$4,500.00, $2,250.00 of which shall be paid at he
time of the service of the notice to quit, and
$2,250.00 of which shall be paid when the unit is
vacated. In no case, however, shall the landlord
be obligated under this section 37.9C(e)(l) to
provide more than $13,500.00 in relocation ex-
penses to all Eligible Tenants in the same unit.

(2) In addition, each Eligible Tenant who is
60 years of age or older or who is disabled within
the meaning of Section 12955.3 of the California
Government Code, and each household with at
least one Eligible Tenant and at last one child
under the age of 18 years, shall be entitled to
receive an additional payment of $3,000.00.
$1,500.00 of which shall be paid within fifteen
(15) calendar days of the landlord's receipt of
written notice from the Eligible Tenant of entitle-
ment to the relocation payment along with sup-
porting evidence, and $1,500.00 of which shall be
paid when the Eligible tenant vacated the unit.
Within 30 days after notification to the landlord
of a claim of entitlement to additional relocation
expenses because of disability, age, or having
children in the household, the landlord shall give
written notice to the Rent Board of the Claim for
additional relocation assistance and whether or
not the landlord disputes the claim.

(3) Commencing March 1, 2007, these relo-
cation expenses, including the m.aximu][n reloca-
tion expenses per unit, shall increase annually,
rounded to the nearest dollar, at the rate of
increase in the "rent of primary residence" ex-
penditure category of the Consumer Price Index
(CPI) for All Urban Consumers in the San Fran-
cisco-Oakland-San Jose Region for the preceding
calendar year, as that data is made available by
the United States Department of Leibor and
published by the Board. (Added by Proposition
H, App. 11/7/2006)

SEC. 37.10A. MISDEMEANORS, AND
OTHER ENFORCEMENT PROVISIONS.

(a) It shall be unlawful for a landlord to
increase rent or rents in violation of the decision
of an Administrative Law Judge or the decision

Supp. No. 4, January 2007

Sec. 37.10A.

San Francisco - Administrative Code

3694

of the Board on appeal pursuant to the hearing
and appeal procedures set forth in Section 37.8 of
this Chapter. It shall further be unlawful for a
landlord to charge any rent which exceeds the
limitations of this Chapter. Any person who
increases rents in violation of such decisions or
who charges excessive rents shall be guilty of a
misdemeanor.

(b) It shall be unlawful for an landlord to
refuse to rent or lease or otherwise deny to or
withhold from any person any rental unit be-
cause the age of a prospective tenant would
result in the tenant acquiring rights under this
Chapter. Any person who refuses to rent in
violation of this subsection shall, in addition to
any other penalties provide by State or federal
law, be guilty of a misdemeanor.

(c) It shall be unlawful for a landlord or for
any person who willfully assists a landlord to
request that a tenant move from a rental unit or
to threaten to recover possession of a rental unit,
either verbally or in writing, unless:

(1) The landlord in good faith intends to
recover said unit under one of the grounds enu-
merated in Section 37.9(a) or (b); and

(2) Within five days of any such request or
threat the landlord seizes the tenant with a
written notice stating the particular ground un-
der Section 37.9(a) or (b) that is the basis for the
landlord's intended recovery of possession of the
unit.

(d) It shall be unlawful for a landlord or for
any person who willfully assists a landlord to
recover possession of a rental unit unless, prior
to recovery of possession of the unit:

(1) The landlord files a copy of the written
notice required under Section 37.10A(c) with the
Board together with any preceding warning or
threat to recover possession, unless the particu-
lar ground for recovery is non-payment of rent;
and

(2) The landlord satisfies all requirements
for recovery of the unit under Section 37.9(a) or
(b).

(e) In any criminal or civil proceeding based
on a violation of Section 37.10A(c) or 37.10A(d),
the landlord's failure to use a recovered unit for

the Section 37.9(a) or (b) ground stated verbally
or in writing to the tenant from whom the unit
was recovered shall give rise to a presumption
that the landlord did not have a good faith
intention to recover the unit for the stated ground.

(f) If possession of a rental unit is recovered
as the result of any written or verbal statement
to the tenant that the landlord intends to recover
the unit under one of the grounds enumerated in
Section 37.9(a) or (b), the unit shall be subject to
all restrictions set forth under this Chapter on
units recovered for such stated purpose regard-
less of any agreement made between the land-
lord or the landlord's agent and the tenant who
vacated the recovered unit. Any unit vacated by
a tenant within 120 days after receiving any
written or verbal statement from the landlord
stating that the landlord intends to recover the
unit under Section 37.9(a) or (b), shall be rebut-
tably presumed to have been recovered by the
landlord pursuant to the grounds identified in
that written or verbal statement.

(g) Except as provided in this subsection, it
shall be unlawful for a landlord, or for any
person who willfully assists a landlord, including
the landlord's attorney or legal representative, to
seek or obtain a tenant's agreement not to coop-
erate with any investigation or proceeding by
any administrative or law enforcement or other
governmental agency under this Chapter, or to
otherwise seek or obtain a tenant's waiver of
rights under this Chapter. Any waiver of rights
by a tenant under this Chapter shall be void as
contrary to public policy unless the tenant is
represented by independent counsel and the
waiver is approved in a Court-supervised settle-
ment agreement, or by a retired judge of the
California Superior Court sitting as a mediator
or arbitrator by mutual agreement of the tenant
represented by independent counsel and the land-
lord. Any settlement agreement shall identify
the judge, mediator, or arbitrator reviewing the
settlement, all counsel representing the parties,
and any other information as required by the
Board. The landlord shall file a signed copy of
the settlement agreement with the Board within
ten days of execution. Unless otherwise required

Supp. No. 4, January 2007

3695

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.12.

by the Board, the copy of the agreement filed
with the Board shall redact the amount of pay-
ments to be made to tenants.

(h) It shall be unlawful for a landlord to
knowingly fail to disclose in writing to the buyer,
prior to entering into a contract for the sale of
any property consisting of two or more residen-
tial units, the specific legal ground(s) for the
termination of the tenancy of each residential
unit to be delivered vacant at the close of escrow.

(i) It shall be unlawful for a landlord/owner,
when offering a property for sale in the City and
County of San Francisco that includes two or
more residential units, to knowingly fail to dis-
close in writing to any prospective purchaser:

(1) The specific legal ground(s) for the ter-
mination of the tenancy of each residential unit
to be delivered vacant at the close of escrow; and,

(2) Whether the unit was occupied by an
elderly or disabled tenant at the time the ten-
ancy was terminated. For purposes of this sec-
tion 37.10A(i), "elderly" means a tenant defined
as elderly by San Francisco Administrative Code
section 37.9(i)(l)(A), 37.9A(e)(l)(C), 37.9A(e)(2)(D),
or 37.9A(e)(3)(C), or a tenant defined as "senior"
by San Francisco Subdivision Code section 1359(d).
For purposes of this section 37.10A(i), "disabled"
means a tenant defined as disabled by San
Francisco Administrative Code section
37.9(i)(l)(B)(i), 37.9A(e)(l)(C), 37.9A(e)(2)(D), or
37.9A(e)(3)(C), or by San Francisco Subdivision
Code section 1359(d).

Any disclosure required by this Subsection (i)
that is made on a flier or other document describ-
ing the property which is made available to
prospective purchasers at each open house and
at any tour through the property will constitute
compliance with the disclosure requirements of
this Subsection (i).

(j) Any person who violates Section 37. lOA(a),
(b), (c), (d), (g) or (h) is guilty of a misdemeanor
and shall be punished by a mandatory fine of one
thousand dollars ($1,000), and in addition to
such fine may be punished by imprisonment in
the County Jail for a period of not more than six

months. Each violation shall constitute a sepa-
rate offense. (Added by Ord. 20-84, App. 1/19/84;
amended by Ord. 20-84, App. 10/2/98; Ord. 347-
99, File No. 992197, App. 12/30/99; Ord. 57-02,
File No. 011575, App. 5/3/2002; Amended by
Proposition B, 6/6/2006)

SEC. 37.11A. CIVIL ACTIONS.

Whenever a landlord charges a tenant a rent
which exceeds the limitations set forth in this
Chapter, retaliates against a tenant for the ex-
ercise of any rights under this Chapter, or at-
tempts to prevent a tenant from acquiring any
rights under this Chapter, the tenant may insti-
tute a civil proceeding for money damages; pro-
vided, however, that any monetary award for
rent overpayments resulting from a rent in-
crease which is null amd void pursuant to Section
37.3(b)(5) shall be limited to a refund of rent
overpayments made during the three-year pe-
riod preceding the month of filing of the action,
plus the period between the month of filing and
the date of the court's order. In any case, calcu-
lation of rent overpayments and re-setting of the
lawful base rent shall be based on a determina-
tion of the validity of all rent increases imposed
since April 1, 1982, in accordance with Sections
37.3(b)(5) and 37.3(a)(2) above. The prevailing
party in any civil action brought under this
Section 37. 11 A shall be entitled to recover rea-
sonable attorneys' fees and costs. The remedy
available under this Section shall be in addition
to any other existing remedies which may be
available to the tenant. (Added by Ord. 20-84,
App. 1/19/84; amended by Ord. 162-93, App.
5/28/93; Ord. 363-93, App. 11/18/93; Ord. 293-98,
App. 10/2/98)

SEC. 37.12. TRANSITIONAi:.
PROVISIONS.

This Section is enacted in order to assure the
smooth transition to coverage under this Chap-
ter of owner-occupied buildings containing four
units or less, as a result of the repeal of the
exemption for owner-occupied units. The provi-
sions of this Section apply only to such units. The
units are referred to as "newly covered units" in

Supp. No. 4, January 2007

Sec. 37.12.

San Francisco - Administrative Code

3696

this Section. The term "effective date of cover-
age" as used herein means the effective date of
the repeal of the owner occupancy exemption.

(a) The initial base rent for all newly cov-
ered units shall be the rent that was in effect for
the rental unit on May 1, 1994. If no rent was in
effect for the newly covered unit on May 1, 1994,
the initial base rent shall be the first rent in
effect after that date.

(b) All rents paid after May 1, 1994, in
excess of the initial base rent under Section
37.12(a), shall be refunded to the tenant no later
than December 15, 1994. If the landlord fails to
refund the excess rent by December 15, 1994, the
tenant may deduct the amount of the refund
from future rent payments, or bring a civil action
under Section 37.11A, or exercise any other ex-
isting remedies. All tenants residing in newly
covered units are entitled to this refund, even if
the tenant vacated before the effective date of
coverage of the newly covered units.

(c) As soon as practical after the effective
date of coverage, the Board shall mail to the
landlords of record of newly covered units a
notice advising of the repeal of the exemption for
owner-occupied buildings containing four units
or less. The notice shall include information
deemed appropriate by the Board to explain the
requirements and effects of the change in the
law. It shall be the responsibility of landlords to
distribute a copy of said notice to all newly
covered units within 15 days of the date the
Board mails such notice to landlords. Distribu-
tion shall be by mail properly addressed to a
tenant of the newly covered unit, or by personal
delivery to a tenant of the newly covered unit, or
by placing said notice under the door of the
primary entrance to the newly covered unit.
(Added by Proposition I, 11/8/94; amended by
Ord. 88-95, App. 4/7/95)

SEC. 37.13. KEYS.

(a) A landlord shall provide a minimum of
one key or key-set per rental unit for each adult
occupant, without charge.

(b) Additional Keys/Key-Sets. A tenant
may request keys/key-sets in addition to those
provided pursuant to Section 37.13(a), for his or
her convenience. Requested additional keys/key-
sets must be provided within fourteen (14) days
of the tenant's written request stating the rea-
son(s), unless the landlord timely denies the
request in writing as provided in Section
37.13(b)(2). Examples of tenant reasons for re-
ceiving additional keys/key-sets include, but are
not limited to: admitting a service provider,
delivery person, houseguest, or relative. All keys
are issued for the duration of a tenancy to be
returned upon vacating the unit.

(1) When providing requested additional
keys/key-sets to a tenant, the landlord may charge
only for the documented cost of replicating the
additional keys/key-sets, which cost shall be paid
by the tenant upon delivery of the requested
additional keys/key-sets. Additional keys/key-
sets shall be provided without requiring any
other cost, fees, deposits, or terms or conditions
of any kind whatsoever.

(2) The landlord may deny the request for
additional keys/key-sets only for good reason,
such as unlawful occupancy in the tenant's unit
or the tenant's pattern of lease violation. Any
landlord denial must be provided to the tenant in
writing, stating specific reasons for the denial,
within fourteen (14) days of the written request.

(3) A tenant may file a petition with the
Board to decide a disputed request for additional
keys or key-sets which may constitute a substan-
tial decrease in housing services, and/or to de-
cide a disagreement concerning landlord charges
or deposits (Section 37.13(b)(1)). A disputed re-
quest includes a failure to respond within four-
teen days (Section 37.13(b)), a disagreement con-
cerning landlord terms and conditions (Section
37.13(b)(1)), and a denial (Section 37.13(b)(2)).

(A) The Board through its Administrative
Law Judges shall conduct a hearing in order to
decide the petition.

(B) The decision of the Administrative Law
Judge shall be final unless the Board vacates the
decision on appeal.

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3697

Residential Rent Stabilization and Arbitration Ordinance

Sec. 37.15.

(C) Either party may file an appeal of the
Administrative Law Judge's decision with the
Board. Such appeals are governed by Section
37.8(f).

(4) Unreasonable denial of additional keys/
key-sets requested under this Section 37.13(b),
or failure to respond to the tenant's written
request within fourteen days by providing either
the keys/key-sets or a written denial as provided
by Sections 37.13(b) and (b)(2), or imposition of
terms or conditions prohibited by Section
37.13(b)(1), constitutes a substantial decrease in
housing services for which the Administrative
Law Judge may order a corresponding reduction
in rent. (Added by Ord. 34-04, File No. 031879,
App. 3/19/2004; amended by Ord. 66-05, File No.
041688, App. 4/15/2005) (Former Sec. 37.13 added
by Ord. 62-02, File No. 020343, App. 5/3/2002;
renumbered Sec. 37.14 by Ord. 34-04)

SEC. 37.14A. HEARINGS AND
REMEDIES FOR VIOLATION OF
RESIDENTIAL HOTEL VISITOR
POLICIES.

(a) Upon receipt of a petition from a current
or former occupant of a residential hotel alleging
violation of the provisions of Administrative Code
Chapter 41D, including allegation of violation of
the Uniform Visitor Policy or any Supplemental
Visitor Policy, the Board through its Administra-
tive Law Judges shall conduct a hearing in order
to decide the petition. This decision may require
a determination as to whether a residential
hotel's policies and procedures are consistent
with the Uniform Visitor Policy and any ap-
proved Supplemental Policies, and in compliance
with Administrative Code Chapter 4 ID.

(b) Upon an Administrative Law Judge's
findings of fact and decision that the operator,
employee or agent of a residential hotel has
violated the Uniform Visitor Policy or any ap-
proved Supplemental Visitor Policy or any other
provision of Chapter 4 ID, the Administrative
Law Judge may conclude that the occupant has
suffered a diminution in housing services and
order a corresponding reduction in rent.

(d) Either party may file an appeal of the
Administrative Law Judge's decision with the
Board. Such appeals are governed by Section
37.8(f). (Ord. 34-04, File No. 031879, App. 3/19/
2004; Ord. 73-06, File No. 060188, App. 4/20/
2006) (Formerly Sec. 37.13; added by Ord. 62-02,
File No. 020343, App. 5/3/2002; renumbered by
Ord. 34-04, File No. 031879, App. 3/19/2004)

SEC. 37.14B. HEiMlING, RESIDENTIAL
HOTEL MAIL RECEPTACLES.

(a) Upon receipt of a petition from a current
or former permanent resident of a residential
hotel alleging violation of the provisions of Ad-
ministrative Code Chapter 41E, the Board through
its Administrative Law Judges shall conduct a
hearing in order to decide the petition. This
decision may require a determination as to
whether the petitioner is permanent resident.

(b) Upon an Administrative Law Judge's
findings of fact and decision that the operator of
a residential hotel has violated the requirement
to install a United States Postal Service-ap-
proved mail receptacle for receipt of mail deliv-
ered by the United States Postal Service, the
Administrative Law Judge may conclude that
the resident has suffered a diminution in hous-
ing services and order a corresponding reduction
in rent.

(d) Either party may file an appeal of the
Administrative Law Judge's decision with the
Board. Such appeals are governed by Section
37.8(f). (Added by Ord. 73-06, File No. 060188,
App. 4/20/2006)

SEC. 37.15. SEVERABILITi.

Supp. No. 4, January 2007

Sec. 37.15. San Francisco -Administrative Code 3698

Chapter provisions, and clauses of this Chapter
are declared to be severable. (Formerly Sec.
37.14; amended by Ord. 20-84, App. 1/19/84;
amended by Proposition I, 11/8/94; Ord. 62-02,
File No. 020343, App. 5/3/2002; renumbered by
Ord. 34-04, File No. 031879, App. 3/19/2004)

[The next page is 3717] Supp. No. 4, January 2007

CHAPTER 37A; RENT STABILIZATION AND ARBITRATION FEE

Sec. 37A.1. Scope.

Sec. 37A.2. Findings.

Sec. 37A.3. Purpose.

Sec. 37A.4. Imposition of the Fee.

Sec. 37A.5. Residential Rent Stabilization

and Arbitration Fund.
Sec. 37A.6. Recovery of the Fee,

Limitations.
Sec. 37A.7. Rules and Regulations.
Sec. 37A.8. Manner of Giving Notice.
Sec. 37A.9. Severability.

SEC. 37A.1. SCOPE.

This Chapter is applicable to all residential
units in the City and County of San Francisco,
including residential units which are exempt
from the rent increase limitation provisions (but
not other provisions) of Chapter 37 pursuant to
the Costa-Hawkins Rental Housing Act (Civil
Code §§ 1954.50. et seq.) and/or San Francisco
Administrative Code Section 37.3(d). For pur-
poses of this Chapter, "residential units" are
dwelling units and guest rooms as those terms
are defined in Sections 400 and 401 of the San
Francisco Housing Code. The term shall not
include:

(a) Guest rooms exempted or excluded from
regulation under Chapter 41 of this Code;

(b) Dwelling units in nonprofit cooperatives
owned, occupied and controlled by a majority of
the residents or dwelling units solely owned by a
nonprofit piiblic benefit corporation governed by
a board of directors the majority of which are
residents of the dwelling units and where it is
required in the corporate by-laws that rent in-
creases be approved by a majority of the resi-
dents;

(c) Housing accommodations in any hospi-
tal, convent, monastery, extended care facility,
asylum, residential care or adult day health care
facility for the elderly which must be operated
pursuant to a license issued by the California

Department of Social Services, as required by
California Health and Safety Chapters 3.2 and
3.3, or in dormitories owned and operated by an
institution of higher education, a high school, or
an elementary school;

(d) Dwelling units whose rents are con-
trolled or regulated by any government unit,
agency or authority, excepting those units which
are subject to the jurisdiction of the Residential
Rent Stabilization and Arbitration Board. How-
ever, Section 8 certificate, voucher and related
programs administered by the San Francisco
Housing Authority, which are subject in whole or
part to the jurisdiction of the Residential Rent
Stabilization and Arbitration Board shall remain
exempt from the fee;

(e) Any dwelling unit for which the owner
has on file with the Assessor a current
homeowner's exemption;

(f) Any dwelling unit which is occupied by
an owner of record on either a full-time or
part-time basis and which is not rented at any
time, provided that the owner file with the Tax
Collector an affidavit so stating;

(g) Dwelling units located in a structure for
which a certificate of final completion and occu-
pancy was first issued by the Bureau of Building
Inspection after June 13, 1979, except that any
such units shall be subject to this Chapter 37 A if
so designated in a development agreement en-
tered into by the City under Chapter 56 of the
San Francisco Administrative Code;

(h) Dwelling units in a building which, after
June 13, 1979, has undergone substantial reha-
bilitation as that term is defined in Chapter 37 of
this Code. (Added by Ord. 278-89, App. 8/2/89;
amended by Ord. 291-90, App. 8/1/90; Ord. 211-
95, App. 6/30/95; Ord. 178-99, File No. 990818,
App. 6/25/99; Ord. 116-00, File No. 991315, App.
6/2/2000; Ord. 92-07, File No. 061217, App. 4/27/
2007)

3717

Supp. No. 7, April 2007

Sec. 37A.2.

San Francisco - Administrative Code

3718

SEC. 37A.2. FINDINGS.

The Board of Supervisors hereby finds:

(a) In Section 37.1 of this Code, the Board of
Supervisors found that there was a shortage of
decent, safe and sanitary housing in the City and
County of San Francisco resulting in a critically
low vacancy factor. The Board further found that
rent regulation was necessary in order to allevi-
ate the ill effects of the City's housing shortage to
meet the need for affordable housing, and to
advance the City's housing policies. The Board
now hereby finds that this housing shortage still
persists and that rent regulation continues to be
a necessary and effective means of mitigating
this condition.

(b) By Ordinance No. 276-79, adopted June
12, 1979, the Board of Supervisors enacted the
Residential Rent Stabilization and Arbitration
Ordinance ("Rent Ordinance," Chapter 37, San
Francisco Administrative Code) to regulate resi-
dential rents in San Francisco. The Ordinance
created the Residential Rent Stabilization and
Arbitration Board ("Rent Board," Sections 37.1(a),
(b) and 37.4) to administer and enforce the Rent
Ordinance and thereby safeguard tenants from
excessive increases while at the same time as-
sure landlords fair and adequate rents. The Rent
Board benefits both landlords and tenants by
providing for the orderly and efficient adminis-
tration of the Rent Ordinance and by protecting
tenants from unreasonable rent increases and
displacement while assuring that landlords re-
ceive fair rents consistent with the Ordinance.

(c) It is fair and reasonable that the costs of
administering and enforcing the Rent Ordinance
through the Rent Board should be equitably
distributed among the City's residential units.

Therefore, the Board finds that the owner of
each residential unit as defined in Section 37A.1
above shall be required to pay an annual Rent
Stabilization and Arbitration fee for each unit.

(d) The fee for each residential unit shall
equal the projected annual cost of funding the
Rent Board plus related administrative costs
pursuant to Section 10.194 of this Code includ-
ing, but not limited to, the Tax Collector and
Controller, divided by the total number of resi-

dential units estimated to pay the fee minus any
balance remaining in the fund set forth in Sec-
tion 10.117-88 of this Code; provided, however,
that in calculating the fee, the Controller shall
round up any fraction of a dollar to the next
whole dollar. For the purposes of this calculation,
a guest room shall be counted as one-half of a
residential unit and shall be charged half the fee.
The Assessor and the Director of the Department
of Building Inspection shall release to the Infor-
mation Services Division (ISD) of the Depart-
ment of Telecommunications and Information
Services (DTIS) by June 1st information neces-
sary for compilation of the billing list. The Con-
troller shall compile the list, determine the total
number of residential units and calculate the fee
by July 31st. The fee shall be recalculated on
July 31st each year.

(e) The fee herein is for regulatory purposes
only. It is not designed or intended for revenue
purposes. Any surplus collected in a given year
will reduce the fee in the next fiscal year. (Added
by Ord. 278-89, App. 8/2/89; amended by Ord.
291-90, App. 8/1/90; Ord. 354-90, App. 10/17/90;
Ord. 186-93, App. 6/11/93; Ord. 178-99, File No.
990818, App. 6/25/99; Ord. 215-00, File No. 001264,
App. 9/8/2000; Ord. 161-02, File No. 020471,
App. 7/17/2002; Ord. 170-04, File No. 040745,
App. 7/22/2004)

SEC. 37A.3. PURPOSE.

The purpose of this ordinance is to require
those who rely upon and/or benefit from the Rent
Board's administration and enforcement of the
Rent Ordinance to pay a fee which is directly
related to the financial burden placed upon the
City in carr3dng out the Rent Board's functions
and duties. (Added by Ord. 278-89, App. 8/2/89)

SEC. 37A.4. IMPOSITION OF THE FEE.

The owner of each residential unit in San
Francisco shall pay annually to the City and
County of San Francisco a Residential Rent
Stabilization and Arbitration fee to be calculated
by the Controller as provided in Section 37A.2(d)
above. The Tax Collector shall bill the fee to the
owners of all residential units on the property
tax bill. All laws applicable to the collection and

Supp. No. 7, April 2007

3719

Rent Stabilization and Arbitration Fee

Sec. 37A.8.

enforcement of ad valorem property taxes shall
be applicable to the collection and enforcement of
the Residential Rent Stabilization and Arbitra-
tion fee, except that any lien arising from non-
payment of the fee shall have the force, effect
and priority of a judgment lien. (Added by Ord.
278-89, App. 8/2/89; amended by Ord. 287-95,
App. 9/1/95; Ord. 322-00, File No. 001917, App.
12/28/2000)
Cross reference:

The actual annual residential rent control fee per
unit shall be calculated pursuant to Administrative
Code Section 37A.2., in conformance with Administra-
tive Code Sections 10.117-88 and 10.194.

SEC. 37A.5. RESIDENTIAL RENT
STABILIZATION AND ARBITRATION
FUND.

All fees collected under this Chapter shall be
deposited in the Residential Rent Stabilization
and Arbitration Fund as provided in Chapter 10,
Section 10.117-88 of the San Francisco Adminis-
trative Code. All funds so collected shall be used
solely for the purpose of funding the Rent Board
plus related administrative costs pursuant to
Section 10.194 of this Code including, but not
limited to, the Tax Collector and Controller.
(Added by Ord. 278-89, App. 8/2/89)

SEC. 37A.(>. RECOVERY OF THE FEE,
LIMITATIONS.

The owner may seek recovery of the fee from
the tenant(s) in occupancy of each residential
unit on November 1st, up to a maximum of 50%
of the annual fee for each unit, as follows:

(a) An owner seeking recovery of the fee
shall deduct it from the next interest pajnnent
owed on the tenant's security deposit pursuant
to Chapter 49 of this Code, except that where the
interest has been paid annually the owner may
bill the tenant directly as provided in subsection
37A.6(c); or

(b) When the fee is not collected during the
year in which the owner is first entitled to it, the
owner may bank the fee and collect it in a future
year. Only those fees that become due after the
effective date of this Ordinance may be banked.
A banked fee may only be collected as a deduc-

tion against security deposit interest due the
tenant, except that where no interest or insuffi-
cient interest exists (due to no deposit or low
amount of deposit) the owner may bill for any
balance owing as provided in subsection 37A.6(c).
The billing statement must specifically show the
fee amount owed by the tenant for each year, and
the amount of interest due the tenant (if any) for
each year owing.

(c) To the extent provided in subsections
37A.6(a) and (b), the owner may bill the tenant
directly for the fee. The bill shall state the
amount for that unit, that the purpose of the fee
is to fund the Rent Board and related adminis-
traitive costs under Chapter 37A of the San
Francisco Administrative Code, and that the fee
is due and payable v,^ithin 30 days of the date of
the bill.

The owner remains liable for full peiyment of
the fee to the Tax Collector whether or not the
owner seeks any recovery under one of the above
methods or in fact does recover any portion from
the tenant. (Added by Ord. 278-89, App. 8/2/89;
amended by Ord. 291-90, App. 8/1/90; Ord. 178-
99, File No. 990818, App. 6/25/99; Ord. 215-00,
File No. 001264, App. 9/8/2000; Ord. 161-02, File
No. 020471, App. 7/17/2002; Ord. 170-04, File
No. 040745, App. 7/22/2004)

SEC. 37A.7. RULES AND REGUI^^TIONS.

The Tax Collector may adopt such rules,
regulations and administrative procedures as he
or she deems necessary to implement this Chap-
ter. (Added by Ord. 278-89, App. 8/2/89)

SEC. 37A.8.
NOTICE.

MANNER OF GIVING

Any notice required to be given herein by the
Tax Collector to an owner shall be sufficiently
given or served upon the owner for all purposes if
personally served upon the owner or if deposited,
postage prepaid, in a post office letter box ad-
dressed in the name of the owner at the official
address of the owner maintained by the Tax
Collector for the mailing of property tax bills.
(Added by Ord. 278-89, App. 8/2/89)

Supp. No. 7, April 2007

Sec. 37A.9. San Francisco - Administrative Code 3720

SEC. 37A.9. SEVERABILITY.

The provisions of this Chapter shall not ap-
ply to any person, association, corporation or to
any property as to whom or which it is beyond
the power of the City and County of San Fran-
cisco to impose the fee herein provided. If any
sentence, clause, section or part of this ordi-
nance, or any fee imposed upon any person or
entity is found to be unconstitutional, illegal or
invalid, such unconstitutionality, illegality, or
invalidity shall affect only such clause, sentence,
section or part of this ordinance, or person or
entity, and shall not affect or impair any of the
remaining provisions, sentences, clauses, sec-
tions or other parts of this ordinance, or its effect
on other persons or entities. It is hereby declared
to be the intention of the Board of Supervisors
that this ordinance would have been adopted
had such unconstitutional, illegal or invalid sen-
tence, clause, section or part of this ordinance
not been included herein, or had such person or
entity been expressly exempted from the appli-
cation of this ordinance. To this end the provi-
sions of this Chapter are severable. (Added by
Ord. 278-89, App. 8/2/89)

[The next page is 3729] Supp. No. 7, April 2007

CHAPTER 38: TRANSIT IMPACT DEVELOPMENT FEE

Sec. 38.1. Definitions.

Sec. 38.2. Findings.

Sec. 38.3. Imposition of Transit Impact

Development Fee.

Sec. 38.3-1. Imposition of Office Space
Development Fee.

Sec. 38.4. Transit Impact Development

Fee Schedule.

Sec. 38.5. Setting of TIDF.

Sec. 38.6. Credits.

Sec. 38.7. Review of Fee Schedule.

Sec. 38.8. Use of Proceeds from Transit

Impact Development Fee.

Sec. 38.9. Rules and Regulations.

Sec. 38.10. Nonpajrment, Recordation of
Notice of Fee and Notice of
Delinquency, Additional
Request; Notice of Assessment
of Interest, and Institution of
Lien Proceedings.

Sec. 38.11. Lien Proceedings; Notice.

Sec. 38.12. Manner of Giving Notices.

Sec. 38.13. Charitable Exemptions.

Sec. 38.14. Severability.

SEC. 38.1. DEFINITIONS.

For the purposes of this Chapter, the follow-
ing definitions shall apply:

A. Accessory Use. A related minor use
which is either necessary to the operation or
enjoyment of a lawful principal use or condi-
tional use, or is appropriate, incidental and sub-
ordinate to any such use and is located on the
same lot as the principal or conditional use.

B. Base Service Standard. The relation-
ship between revenue service hours offered by
the Municipal Railway and the number of auto-
mobile and transit trips estimated to be gener-
ated by certain non-residential uses, expressed
as a ratio where the numerator equals the aver-
age daily revenue service hours offered by MUNI,

and the denominator equals the daily automo-
bile and transit trips generated by non-residen-
tial land uses as estimated by the TIDF Study or
updated under Section 38.7 of this Chapter.

C. Base Service Standard Fee Rate. The

transit impact development fee that would allow
the City to recover the estimated costs incurred
by the Municipal Railway to meet the demand
for public transit resulting from new develop-
ment in the economic activity categories for
which the fee is charged, after deducting govern-
ment grants, fare revenue, and costs for non-
vehicle maintenance and general administra-
tion.

D. Board. The Board of Supervisors of the
City and County of San Francisco.

E. Certificate of Final Completion and

Occupancy. A certificate of final completion and
occupancy issued by any authorized entity or
official of the City, including the Director of the
Department of Building Inspection, under the
Building Code.

F. City. The City and County of San Fran-
cisco.

G.
TIDF

Covered Use. Any use subject to the

H. Cultural/Institution/Education (CIE).

An economic activity category that includes, but
is not limited to, schools, as defined in subsec-
tions (g), (h), and (i) of Section 209.3 of the
Planning Code and subsections (f) — (i) of Section
217 of the Planning Code; child care facilities, as
defined in subsections (e) and (f) of Section 209.3
of the Planning Code and subsection (e) of Sec-
tion 217 of the Planning Code; museums and
zoos; and community facilities, as defined in
Section 209.4 of the Planning Code and subsec-
tions (a) — (c) of Section 221 of the Planning
Code.

I. Director. The Director of Transportation
of the MTA, or his or her designee.

3729

Supp. No. 9, June 2007

Sec. 38.1.

San Francisco - Administrative Code

3730

J. Economic Activity Category. One of

the following six categories of nonresidential
uses: Cultural/Institution/Education (CIE), Man-
agement, Information and Professional Services
(MIPS), Medical and Health Services, Production/
Distribution/Repair (PDR), Retail/Entertain-
ment, and Visitor Services.

K. Gross Floor Area. The total area of
each floor within the building's exterior walls, as
defined in Section 102.9 of the San Francisco
Planning Code, except that for purposes of deter-
mining the applicability of the TIDE, the exclu-
sion from this definition set forth in Section
102.9(b)(12) of that Code shall not apply

L. Gross Square Feet of Use. The total
square feet of gross floor area in a building
and/or space within or adjacent to a structure
devoted to all covered uses, including any com-
mon areas exclusively serving such uses and not
serving residential uses. Where a structure con-
tains more than one use, areas common to two or
more uses, such as lobbies, stairs, elevators,
restrooms, and other ancillary space included in
gross floor area that are not exclusively assigned
to one use shall be apportioned among the two or
more uses in accordance with the relative amounts
of gross floor area, excluding such space, in the
structure or on any floor thereof directly assign-
able to each use.

M. Management, Information and Pro-
fessional Services (MIPS). An economic activ-
ity category that includes, but is not limited to,
office use as defined in Section 313.1(35) of the
Planning Code; medical offices and clinics, as
defined in Section 890.114 of the Planning Code;
and business services, as defined in Section
890.111 of the Planning Code.

N. Medical and Health Services. An eco-
nomic activity category that includes, but is, not
limited to, those non-residential uses defined in
Sections 209.3(a) and 217(a) of the Planning
Code; animal services, as defined in subsections
(a) and (b) of Section 224 of the Planning Code;
and social and charitable services, as defined in
subsection (d) of Section 209.3 of the Planning
Code and subsection (d) of Section 217 of the
Planning Code.

O. Municipal Railway; MUNI. The public
transit system owned by City and under the
jurisdiction of the Municipal Transportation
Agency

P. Municipal Transportation Agency;

MTA. The agency of City created under Article
8A of the San Francisco Charter.

Q. Municipal Transportation Agency
Board of Directors; MTA Board. The govern-
ing board of the MTA.

R. New Development. Any new construc-
tion, or addition to or conversion of an existing
structure under a building or site permit issued
on or after September 4, 2004, that results in
3,000 gross square feet or more of a covered use.
In the case of mixed use development that in-
cludes residential development, the term "new
development" shall refer to only the non-residen-
tial portion of such development. "Existing struc-
ture" shall include a structure for which a spon-
sor already paid a fee under the prior TIDE
ordinance, as well as a structure for which no
TIDE was paid.

S. Office Space Development Fee; OSDF.

A fee imposed under Section 38.3-1 of this Chap-
ter,

T. Planning Code. The Planning Code of
the City and County of San Francisco, as it may
be amended from time to time.

U. Production/Distribution/Repair

(PDR). An economic activity category that in-
cludes, but is not limited to, manufacturing and
processing, as defined in Section 226 of the
Planning Code; those uses listed in Section 222
of the Planning Code; automotive services, as
defined in Section 223(a) — (k) of the Planning
Code; arts activities and spaces, as defined in
Section 102.2 of the Planning Code; and research
and development, as defined in Section 313.1(42)
of the Planning Code.

V. Residential. Any type of use containing
dwellings as defined in Section 209.1 of the
Planning Code or containing group housing as
defined in Section 209.2(a) — (c) of the Planning
Code.

Supp. No. 9, June 2007

3731

Transit Impact Development Fee

Sec. 38.2.

W. Retail/Entertainment. An economic ac-
tivity category that includes, but is not limited
to, retail use, as defined in Section 218 of the
Planning Code; entertainment use, as defined in
Section 313.1(15) of the Planning Code; massage
establishments, as defined in Section 218.1 of
the Planning Code; laundering, and cleaning and
pressing, as defined in Section 220 of the Plan-
ning Code.

X. Revenue Service Hours. The number
of hours that the Municipal Railway provides
service to the public with its entire fleet of buses,
light rail (including streetcars), and cable cars.

Y. Sponsor. An applicant seeking approval
for construction of new development subject to
this chapter, such applicant's successors and
assigns, and/or any person or entity that controls
or is under common control with such applicant.

Z. TIDF Study. The study commissioned
by the San Francisco Planning Department and
performed by Nelson/Nygaard Associates en-
titled "Transit Impact Development Fee Analysis —
Final Report," dated May 2001, including all the
Technical Memoranda supporting the Final Re-
port and the Nelson/Nygaard update materials
contained in Board of Supervisors File No. 040141.

AA. Transit Impact Development Fee;
TIDF. The development fee that is the subject of
this Chapter.

BB. Treasurer. Treasurer of the City and
County of San Francisco.

CC . Trip Generation Rate. The total num-
ber of automobile and Municipal Railway trips
generated for each 1,000 square feet of develop-
ment in a particular economic activity category
as established in the TIDF Study, or pursuant to
the five-year review process established in Sec-
tion 38.7 of this Chapter.

DD. Use. The purpose for which land or a
structure, or both, are legally designed, con-
structed, arranged or intended, or for which they
are legally occupied or maintained, let or leased.

EE. Visitor Services. An economic activity
category that includes, but is not limited to, hotel
use, as defined in Section 313.1(18) of the Plan-
ning Code; motel use, as defined in subsections
(c) and (d) of Section 216 of the Planning Code;

and time-share projects, as defined in Section
11003.5(a) of the Califoinia Business and Profes-
sions Code. (Added by Ord. 199-04, File No.
040141, App. 8/5/2004) (Former Sec. 38.1 amended
by Ord. 205-86, App. 6/6/86; Ord. 76-03, File No.
020592, App. 5/2/2003; repealed by Ord. 199-04;
Ord. 144-07, File No. 070133, App. 6/29/2007)

SEC. 38.2. FINDINGS.

A. In 1981, the City enacted an ordinance
imposing a Transit Impact Development Fee
("TIDF") on new office development in the Down-
town area of San Francisco. The ordinance es-
tablished a rate of $5.00 for each square foot of
new office development. The TI DF was based on
studies showing that the development of new
office uses places a burden on the Municipal
Railway, especially in the downtown area of San
Francisco during commute hours, known as "peak
periods." The TIDF was based on two cost analy-
ses: one by the Finance Bureau of the City's
former Public Utilities Commission, performed
in 1981, and one by the accounting firm of
Touche-Ross, performed in March 1983 to defend
a legal challenge to the TIDF. The studies showed
that the cost per square foot of new office devel-
opment to provide public transit service was
$9.18 and $8.36, respectively The California
Court of Appeal upheld the TIDF ordinance
against legal challenges in Russ Bldg. Partner-
ship V. City and County of San Francisco, 199
Cal.App.3d 1496 (1987), reprinted as directed by
the California Supreme Court in Russ Bldg.
Partnership v. City and County of San Francisco,
44 Cal.3d 839, 845-55 (1988). Among other things,
the Court of Appeal found that the TIDF was a
valid condition of development of real property,
and not a special tax requiring voter approval.
The Court also upheld the TIDF against equal
protection and substantive due process chal-
lenges. Additionally, the California Supreme Court
upheld the constitutionality of the TIDF as ap-
plied to development of new office uses approved
before passage of the TIDF ordinance, vi^here the
City had conditioned approval of the new devel-
opment on the developer's payment of a contem-
plated, but yet unknown, transit mitigation fee.

Supp. No. 9, June 2007

Sec. 38.2.

San Francisco - Administrative Code

3732

B. In 2000, the City's Planning Depart-
ment, with assistance from the Municipal Trans-
portation Agency, commissioned a study of the
TIDE The Planning Department issued a re-
quest for proposals for a consultant to consider
various issues involving the TIDF, including: (1)
whether the TIDF should be expanded to include
types of land uses in addition to offices; (2)
whether the TIDF should be expanded geographi-
cally beyond the Downtown area; (3) whether fee
amounts should vary by geographic or land use
categories; (4) what standards should be used for
measuring the baseline performance of the Mu-
nicipal Railway ("MUNI"); and (5) the developer
fees that would be necessary to fund public
transit to meet the additional demand resulting
from new development.

C. In 2001, the Planning Department se-
lected Nelson/Nygaard Associates, a nationally
recognized transportation consulting firm, to per-
form the study Later in 2001, Nelson/Nygaard
issued its final report ("TIDF Study"). Before
issuing the TIDF Study, Nelson/Nygaard pre-
pared several Technical Memoranda, which pro-
vided detailed analyses of the methodology and
assumptions used in the TIDF Study.

D. The TIDF Study concluded that new
non-residential uses in San Francisco will gen-
erate demand for a substantial number of auto
and transit trips by the year 2020. The TIDF
Study confirmed that while new office construc-
tion will have a substantial impact on MUNI
services, new, development in a number of other
land uses will also require MUNI to increase the
number of revenue service hours. The TIDF
Study recommended that the TIDF be extended
to apply to most non-residential land uses. The
TIDF Study found that certain types of new
development generate very few daily trips and
therefore may not appropriately be charged a
new TIDF.

E. The TIDF Study also determined that
the need to expand MUNI services to accommo-
date new development extends to all times of the
day, not just peak periods, and therefore recom-
mended that any measure of the existing level of

service and additional service required by new
development include service at all times of the
day

E The former TIDF Ordinance applied the
fee to developments in the traditional "Down-
town" area of the City The TIDF Study noted
that since 1981, however, development has ex-
panded out of the Downtown area of the City,
and that such development has required MUNI
to build transit infrastructure in areas outside of
the boundary defined in the former TIDF Ordi-
nance.

G. To meet the increased demand for public
transit projected by the TIDF Study, MUNI must
build new infrastructure and add or adjust ser-
vice. For example, MUNI's 2002 publication, "A
Vision for Rapid Transit in San Francisco" ("Vi-
sion Plan"), proposes transit projects along 12
major corridors in San Francisco, covering all
areas of the City.

H. Even where employees and others drawn
to new development use private transportation,
their trips will increase the cost of maintaining
MUNI's existing service level ("base service stan-
dard") because increasing traffic congestion will
result in slower travel speeds for MUNI and
require MUNI to add more service hours to
maintain its base service standard. Accordingly,
new development will require MUNI to add
service hours to maintain schedules and reliabil-
ity that extends beyond the new riders seeking to
use MUNI service.

I. New development will directly and indi-
rectly require MUNI to (a) maintain and expand
service capacity through adding revenue service
hours; (b) purchase, maintain and repair rolling
stock; (c) install new lines; and (d) add service to
existing lines.

J. The TIDE Study recommended that the
City enact an ordinance to impose transit impact
fees that would allow MUNI to maintain its base
service standard as new development occurs
throughout the City. The proposed ordinance
would require sponsors of new development in
the City to pay a fee that is reasonably related to
the financial burden imposed on MUNI by the
new development. This financial burden is mea-

Supp. No. 9, June 2007

3733

Transit Impact Development Fee

Sec. 38.2.

sured by the cost that will be incurred by MUNI
to provide increased service to maintain the
applicable base service standard over the life of
such new development.

K. The TIDF Study expressed the base ser-
vice standard as a ratio in which the numerator
is the number of hours that MUNI provides
service to the public on its entire fleet of vehicles
("revenue service hours"), and the denominator
is the number of trips generated by all non-
residential land uses. An increase in trips result-
ing from new non-residential development will
reduce the ratio of revenue service hours to
overall trips generated by new development. To
maintain the base service standard to accommo-
date the new development, MUNI must increase
revenue service hours.

L. The TIDF Study developed a daily trip
generation rate for each of six economic activity
categories developed in the "Cit5rwide Land Use
Study," prepared for the Planning Department in
1998. The daily trip generation rate included
automobile and public transit trips, but excluded
non-motorized trips because such trips do not
materially affect traffic congestion. The TIDF
Study determined that the trip generation rates
in each economic activity category do not vary
geographically within the City. Therefore, the
TIDF Study concluded that developer fee rates
should not vary in different districts within the
City. The trip generation rates contained in the
TIDF Study represent the most reasonable rates
available for the economic activity categories in
the Study.

M. Using data obtained from MUNI and
the fiscal year 2000 National Transit Database,
the TIDE Study calculated the base service stan-
dard fee rEites for each of the six economic
activity categories in the following way:

(1) To calculate MUNI's total annual costs,
the TIDF Study combined MUNI's fiscal year
2000 operating costs with an average annual
capital budget, estimated by averaging the prior
five years of MUNI's capital expenditures.

Average Annual Capital
Costs

$310,000,000

Total Annual Costs

$694,113,000

(2) The Study calculated MUNI's net an-
nual costs for fiscal year 2000 by subtracting fare
box revenue and federal and state grant funds
from MUNI's total costs.

Total Annual Costs

$694,113,000

FY 2000 Fare Box Revenue

($101,310,000)

FY 2000 Federal/State Grant
Funds

($182,900,000)

Net Annual Costs

$409,903,000

(3) The Study then determined MUNI's net
annual cost per revenue service hour by dividing
MUNI's net annual costs by MUNI's average
daily revenue service hours, as reported to the
National Transit Database.

Average

Daily

Net i^lnnual

Revenue

Cost Per

Net Annual

Service

Revenue

Costs

Hours

Service Hour

$409,903,000

~ 8,436

$48,600

(4) The TIDF Study estimated the number
of daily auto and transit trips within the City
(9,035,282) by using trip generation rates and
2000 employment data supplied by the Planning
Department. By dividing MUNI's average daily
revenue service hours (8,436) by the estimated
daily auto and transit trips within the City
(9,035,282), the TIDF Study determined that
MUNI provided approximately 0.9336 service
hours for every 1,000 transit and auto trips. The
TIDF Study multiplied the net annual cost per
revenue service hour by 0.9336 to determine a
net annual cost per trip.

Net Annual

Revenue

Cost Per

Service

Net Annual

Revenue

Hours Per

Cost Per

Service Hour

1,000 Trips

Tt-ip

$48,600

X 0.9336

$45.37

FY 2000 Operating Costs $384,113,000

(5) The Study multiplied the net annual
cost per trip by an adjusted daily trip rate per
economic activity category to calculate a net

Supp. No. 9, June 2007

Sec. 38.2.

San Francisco - Administrative Code

3734

annual cost per gross square foot (gsf) of new
development for each economic activity category.

The TIDF Study adjusted the daily trip rate to
eliminate bicycle and pedestrian trips.

Economic Activity
Category

Adjusted Daily Trip
Rate Per 1,000 gsf

Net Annual
Cost Per Trip

Net Annual Cost per
gsf of Development

Cultural/Institution/
Education

42.3

$45.37

$1.92

Management, Informa-
tion and Professional
Services

15.1

$45.37

$0.68

Medical and Health
Services

23.9

$45.37

$1.08

Production/Distribution/
Repair

9.6

$45.37

$0.44

Retail/Entertainment

166.8

$45.37

$7.57

Visitor Services

13.3

$45.37

$0.61

(6) Finally, the Study multiplied the net
annual cost per gross square foot of development
for each economic activity category by a net
present value factor of 20.69 (based on a U.S.
transportation industry index inflation rate of
2.05%, earning on an invested funds rate of

6.14%, and a building life span of 45 years) to
establish the base service standard rates for
each economic activity category that would be
necessary to pay for increased transit services
for the 45-year useful life of a new development.

Economic Activity
Category

Net Present
Value Factor

Net Annual Cost

per gsf of

Development

Base Service
Standard Rates

Cultural/Institution/
Education

20.69

$1.92

$39.67

Management, Informa-
tion and Professional
Services

20.69

$0.68

$14.17

Medical and Health
Services

20.69

$1.08

$22.40

Production/Distribution/
Repair

20.69

$0.44

$9.04

Retail/Entertainment

20.69

$7.57

$156.61

Visitor Services

20.69

$0.61

$12.53

Supp. No. 9, June 2007

3735

Transit Impact Development Fee

Sec. 38.2.

N. In 2004, MUNI updated the base service
standard rates established in the TIDF Study
with fiscal year 2003 data (the "updated base
service standard rates"). To calculate the up-
dated base service standard rates, MUNI modi-
fied certain variables in the TIDF Study's for-
mula to reflect current information, as follows.

(1) Rather than using an estimated average
annual capital budget (the methodology em-
ployed in the TIDF Study), MUNI used its actual
capital costs for fiscal years 1999-2003, as re-
ported to the fiscal year 2003 National Transit
Database, in determining the average annual
capital costs.

Operating Costs

$449,283,888

Average Capital Costs

$192,468,200

Total Costs

$641,752,088

(2) California Government Code Section
65913.8 prohibits including costs for facility main-
tenance and operations in a fee imposed on a
developer for a public capital facility improve-
ment. It is not clear whether this limitation
applies to the TIDF To comply with Government
Code Section 65913.8, if applicable, and to achieve
a more conservative estimate of the recoverable
costs, MUNI deducted its costs for non-vehicle
(facility) maintenance and general administra-
tion. MUNI could not separate general adminis-
tration attributable to facility operations, so MUNI
deducted 100% of the general administration
costs for the entire department. Accordingly, the
updated base service standard rates are even
more consei-vative than may be required under
Section 65913.8.

(3) MUNI applied its updated assumptions
to the TIDP" Study's methodology by deducting
non-vehicle maintenance and general adminis-
tration (in addition to farebox revenues and
grant funds) from its total costs to calculate its
annual net costs:

Total Annual Costs FY 2003

$641,752,088

Farebox Revenue FY 2003

($97,779,333)

Federal/State Grant Funds
FY 2003

($89,445,000)

Non- Vehicle Maintenance FY
2003

($34,173,560)

General Administration FY
2003

($92,197,116)

Net Annual Costs FY 2003

$328,157,079

(4) To determine the net annual cost per
revenue service hour, MUNI used the average
daily revenue service hours for Fiscal Year 2003
(10,062), as reported to the National Transit
Database:

Net Annual
Costs

$328,157,079

Average
Daily

Revenue

Service

Hours

H- 10,062

Net i^nual

Cost Per

Revenue

Service Hour

$32,614

(5) MUNI then calculated the net annual
cost per trip by multipljdng the net annual cost
per revenue service hour by the number of rev-
enue service hours per 1,000 trips:

Revenue

Net Annual

Service

Cost Per

Hours

Net iVnnual

Revenue

Per 1,000

Cost Per

Service Hour

Trips

TWp

$32,614

X 1.1136

$36.32

(6) MUNI multiplied the net annual cost
per trip by the adjusted daily trip rate for each
economic activity category to arrive at a net
annual cost per gross square foot of new devel-
opment for each category:

Supp. No. 9, June 2007

Sec. 38.2.

San Francisco - Administrative Code

3736

Economic Activity
Category

Adjusted Daily Trip
Rate Per 1,000 gsf

Net Updated Annual
Cost Per Trip

Net Updated Annual

Cost per gsf of

Development

Cultural/Institution/
Education

42.3

$36.32

$1.54

Management, Informa-
tion and Professional
Services

15.1

$36.32

$0.55

Medical and Health
Services

23.9

$36.32

$0.87

Production/Distribution/
Repair

9.6

$36.32

$0.35

Retail/Entertainment

166.8

$36.32

$6.06

Visitor Services

13.3

$36.32

$0.48

(7) MUNI also updated the net present value
factor the TIDF Study used to calculate the
updated base service standard rates by calculat-
ing the lump sum amount needed to fund $1.00
(in today's dollars) in annual costs over 45 years,
increasing at a current inflation rate of 3.50%
(the five-year Bay Area Consumer Price Index as
calculated by the Association for Bay Area Gov-
ernments), with the remaining fund balance
invested at a current interest rate of 4.93% (the
five-year average interest rate earned by the

City's Treasurer's Department on pooled funds).
Both the TIDF Study and MUNI used the inter-
est rate earned by the City's Treasurer for the
respective years. But MUNI elected to use the
Bay Area Consumer Price Index rather than the
U.S. Transportation Index on which the TIDF
Study relied because the Bay Area index more
accurately reflects the local inflation rate. The
use of the different net present value factor
yields the following updated base service stan-
dard rates:

Economic Activity
Category

Net Annual Cost per
gsf of Development

Net Present
Value Factor

Updated Base Service
Standard Rates

Cultural/Institution/
Education

$1.54

33.36

$51.25

Management, Informa-
tion and Professional
Services

$0.55

33.36

$18.30

Medical and Health
Services

$0.87

33.36

$28.96

Production/Distribution/
Repair

$0.35

33.36

$11.63

Retail/Entertainment

$6.06

33.36

$202.10

Visitor Services

$0.48

33.36

$16.11

Supp. No. 9, June 2007

3737

Transit Impact Development Fee

Sec. 38.3.

O. In setting the TIDF rates, the City con-
sidered the updated base service standard rates
and input from a variety of stakeholders, includ-
ing business groups, developers, and civic orga-
nizations. The City set the TIDF rates well below
the updated base service standard rates to re-
duce the costs of the TIDF to sponsors of new
developments, who are subject to other develop-
ment fees imposed by the City, and to guarantee
that the TIDF does not exceed the reasonable
cost to fund the additional transit improvements
necessitated by new development. The TIDF
rates are as follows:

Economic
Activity
Category

Updated

Base Service

Standard

Rates

TIDF
Schedule

(from
Sec. 38.4)

Cultural/Insti-

tution/Educa-

tion

$51.25

$10.00

Management,
Information
and Profes-
sional Services

$18.30

$10.00

Medical and
Health Ser-
vices

$28.96

$10.00

Productiony'

Distributioii/

Repair

$11.63

$8.00

Retail/Enter-
tainment

$202.10

$10.00

Visitor Ser-
vices

$16.11

$8.00

P. Based on projected new development over
the next 20 years, the TIDF will provide revenue
to MUNI that is significantly below the costs
that MUNI will incur to mitigate the transit
impacts resulting from the new development.

Q. The TIDF is the most practical and eq-
uitable method of meeting a portion of the de-
mand for additional Municipal Railway service
and capital improvements for the City caused by
new non-residential development.

R. Based on the above findings, the City
determines that the TIDF satisfies the require-
ments of the Mitigation Fee Act, California Gov-
ernment Code Section 66001, as follows:

(1) The purpose of the fee is to meet a
portion of the demand for additional Municipal
Railway service and capital improvements for
the City caused by new nonresidential develop-
ment.

(2) Funds from collection of the TIDF will
be used to increase revenue service hours rea-
sonably necessary to mitigate the impacts of new
non-residential development on public transit
and maintain the applicable base service stan-
dard.

(3) There is a reasonable relationship be-
tween the proposed uses of the TIDF and the
impact on transit of the new developments on
which the TIDF will be imposed.

(4) There is a reasonable relationship be-
tween the types of new development on which
the TIDF will be imposed and the need to fund
public transit for the uses specified in Section
38.8 of this ordinance.

(5) There is a reasonable relationship be-
tween the amount of the TIDF to be imposed on
new developments and the impact on public
transit from the new developments. (Added by
Ord. 199-04, File No. 040141, App. 8/5/2004)
(Former Sec. 38.2 amended by Ord. 224-84, App.
5/15/84; repealed by Ord. 199-04)

SEC. 38.3. IMPOSITION OF TRANSIT
IMPACT DEVELOPMENT FEE.

A. Subject to the exceptions set forth in
subsections D and E below, each sponsor of a new
development in the City shall pay to the City and
deliver to the Treasurer upon issuance of any
temporary certificate of occupancy, and as a
condition precedent to issuance for such new
development of any certificate of final comple-
tion and occupancy, whichever occurs first, a
TIDF The TIDF shall be calculated on the basis
of the number of gross square feet of new devel-
opment, multiplied by the square foot rate in
effect at the time of pa5rment for each of the
applicable economic activity categories within

Supp. No. 9, June 2007

Sec. 38.3.

San Francisco - Administrative Code

3738

the new development, as provided in Section
38.4 of this Chapter. An accessory use shall be
charged at the same rate as the underlying use
to which it is accessory. Whenever any new
development or series of new developments cu-
mulatively creates more than 3,000 gross square
feet of covered use within a structure, the TIDF
shall be imposed on every square foot of such
covered use (including any portion that was part
of prior new development below the 3,000 square
foot threshold).

B. No City official or agency, including the
Department of Building Inspection ("DBI") and
the Port of San Francisco, may issue a certificate
of final completion and occupancy for any new
development subject to the TIDF until it has
received notification from the Treasurer that the
TIDF in accordance with Section 38.4 of this
Chapter has been paid.

C. Except as provided in Sections 38.3(D)
and (E) below, the TIDF shall be payable with
respect to any new development in the City for
which a building or site permit is issued on or
after September 4, 2004.

D. The TIDF shall not be payable on new
development, or any portion thereof, for which a
transit impact development fee has been paid, in
full or in part, under the prior Transit Impact
Development Fee Ordinance adopted in 1981
(Ordinance No. 224-81; former Chapter 38 of this
Administrative Code), except where (1) gross
square feet of use is being added to the building;
or (2) the TIDF rate for the new development is
in an economic activity category with a higher
fee rate than the rate set for MIPS, as set forth in
Section 38.4.

E. No TIDF shall be payable on the follow-
ing types of new development.

(1) New development on property owned
(including beneficially owned) by the City, except
for that portion of the new development that may
be developed by a private sponsor and not in-
tended to be occupied by the City or other agency
or entity exempted under this Chapter, in which
case the TIDF shall apply only to such non-
exempted portion. New development on property
owned by a private person or entity and leased to

the City shall be subject to the fee, unless the
City is the beneficial owner of such new develop-
ment or unless such new development is other-
wise exempted under this Section.

(2) Any new development in Mission Bay
North or South to the extent application of this
Chapter would be inconsistent with the Mission
Bay North Redevelopment Plan and Interagency
Cooperation Agreement or the Mission Bay South
Redevelopment Plan and Interagency Coopera-
tion Agreement, as applicable.

(3) New development located on property
owned by the United States or any of its agencies
to be used exclusively for governmental pur-
poses.

(4) New development located on property
owned by the State of California or any of its
agencies to be used exclusively for governmental
purposes.

(5) New development for which an applica-
tion for environmental evaluation or an applica-
tion for a categorical exemption has been filed
prior to April 1, 2004, and for which a building
permit or site permit is issued on or before
September 4, 2008; provided however, that such
new development may be subject to the OSDF
under Section 38.3-1 of this Chapter.

(6) The following types of new develop-
ments:

(a) Public facilities/utilities, as defined in
Section 209.6 of the Planning Code;

(b) Open recreation/horticulture, as defined
in Section 209.5 of the Planning Code, including
private noncommercial recreation open use, as
referred to in Section 221(g) of the Planning
Code;

(d) Automotive services, as defined in Sec-
tion 223(1)— (v) of the Planning Code;

(e) Wholesaling, storage, distribution, and
open-air handling of materials and equipment,
as defined in Section 225 of the Planning Code;

(f) Other Uses, as defined in Section 227(a) —
(q) and (s) — (t) of the Planning Code;

Supp. No. 9, June 2007

3739

Transit Impact Development Fee

Sec. 38.3-1.

In reviewing whether a development is sub-
ject to the fee, the Director shall consider the
project in its entirety. A sponsor may not seek
multiple building permits to evade paying the
TIDE

F. The sponsor shall pay, or cause to be
paid, the TIDF to the Treasurer on the earliest of
the following dates:

(1) The date when 50 percent of the net
rentable area of the project has been occupied;

(2) The date of issuance of the first tempo-
rary permit of occupancy in the new develop-
ment;

G. Upon payraent of the fee in full to the
Treasurer, and upon request of the sponsor, the
Treasurer shall issue a certificate that the fee
has been paid. The sponsor shall present such
certification to DBI before the issuance of the
final certificate of occupancy for the new devel-
opment. DBI shall provide notice in writing to
the Treasurer, the Planning Department, and
MUNI at least five business days before issuing
the final certificate of occupancy for any new
development project. DBI may not issue a final
certificate of occupancy for any new development
until DBI has received notice from the Treasurer
that the TIDF has been paid. (Added by Ord.
199-04, File No. 040141, App. 8/5/2004) (Former
Sec. 38.3 added by Ord. 224-81, App. 5/5/81;
amended by Ord. 76-03, File No. 020592, App.
5/2/2003; repealed by Ord. 199-04; Ord. 144-07,
File No. 070133, App. 6/29/2007)

SEC. 38.3-1. IMPOSITION OF OFFICE
SPACE DEVELOPMENT FEE.

(a) Definitions. For purposes of this Sec-
tion, the following definitions apply:

(1) Downtown Area. That portion of the
City and County bounded by Van Ness Avenue as
far north as Broadway, from Van Ness Avenue
and Broadway easterly on Broadway to Sansome
Street, then northerly on Sansome Street to the
Embarcadero; then southeasterly on the Embar-
cadero to Berry Street; then southwesterly on
Berry Street to De Haro Street; then southerly
on De Haro Street to Alameda Street; then
westerly on Alameda Street to Bryant Street;

then northerly on Biyant Street to Thirteenth
Street; then westerly on Thirteenth Street to
South Van Ness Avenue; then northerly to Van
Ness Avenue. The downtown area includes all
property which abuts upon any of or is within the
area surrounded by the above enumerated bound-
ary streets.

(2) Gross Square Foot of Office Use. A

square foot of floor space within a structure,
whether or not within a room, to be occupied by,
or primarily serving, office use.

(3) Office Use.. Any structure or portion
thereof intended for occupancy by business enti-
ties which will primarily provide clericsd, profes-
sional or business seirvices of the business entity,
or which will primarily provide clerical, profes-
sional or business services to other business
entities or to the public, at that location.

(b) Imposition of Fee.

(1) New development in the Downtown Area
that contains 3,000 or more gross square feet of
office use for which an application for environ-
mental evaluation or an application for a cat-
egorical exemption has been filed prior to April 1,
2004, and for which a building or site permit was
issued on or after September 4, 2004, but prior to
September 4, 2008, shall be subject to an office
space development fee in accordance with this
section. The office space development fee for
each gross square foot of office use in new devel-
opment in the Downtown Area shall be $5 per
square foot.

(2) Any office space development fee due
under paragraph (b)(1) shall be due and payable
in accordance with the procedures set forth in
this chapter governing payment and collection of
the TIDF, except that the amount of the fee shall
be calculated based upon gross square feet of
office use, rather thcin gross square feet of use.

(c) Credits. In determining the number of
gross square feet of office use to which the office
space development fee applies, the director shall
provide for the following credits:

(1) For prior office uses, there shall be
credit for the number of gross square feet of
office use being eliminated as part of the project.

Supp. No. 9, June 2007

Sec. 38.3-1.

San Francisco - Administrative Code

3740

(2) For prior uses other than office use,
there shall be a credit for the number of gross
square feet of non-office use being eliminated
multiplied by an adjustment factor to reflect the
difference between office building peak-period
municipal railway trip generation rates and peak-
period municipal railway trip generation rates
for other uses. The adjustment factor shall be
determined by the director as follows:

(A) The adjustment factor shall be a frac-
tion, the numerator of which shall be the peak-
period municipal railway trip generation rate
which the director shall determine, in consulta-
tion with the department of city planning applies
to the class of prior use being eliminated by the
project.

(B) The denominator of the fraction shall be
the peak-period municipal railway trip genera-
tion rate for office use used in the most recent
calculation of the transit impact development fee
schedule approved by the board of supervisors.

(C) Notwithstanding the foregoing, the ad-
justment factor shall not exceed one. (Added by
Ord. 144-07, File No. 070133, App. 6/29/2007)

SEC. 38.4. TRANSIT IMPACT
DEVELOPMENT FEE SCHEDULE.

A. TIDE Schedule. The TIDF Schedule
shall be as follows:

Economic Activity
Category

TIDF Per Gross

Square Foot of

Development

Cultural/Institution/
Education

$10.00

Management, Infor-
mation and Profes-
sional Services

$10.00

Medical and Health
Services

$10.00

Production/Distribu-
tion/Repair

$8.00

Retail/Entertainment

$10.00

Visitor Services

$8.00

B. Biennial Adjustment. Biennially, be-
ginning July 1, 2005, the TIDF Schedule shall be
adjusted, without further action by the Board of
Supervisors, to reflect the average annual change
in the Bay Area Consumer Price Index for the
prior two years, as reported by the Association of
Bay Area Governments, and as determined by
the Director. (Added by Ord. 199-04, File No.
040141, App. 8/5/2004) (Former Sec. 38.4 amended
by Ord. 491-85, App. 10/31/85; Ord. 76-03, File
No. 020592, App. 5/2/2003; repealed by Ord.
199-04)

SEC. 38.5. SETTING OF TIDF.

Before obtaining the first building or site
permit for any new development in the City on or
after September 4, 2004, each sponsor shall file
with the Director, on such form as the Director
may develop, a report indicating the number of
gross square feet of use of the new development
and any other information the Director may
require to determine the sponsor's obligation to
pay the TIDF. Each sponsor of a new develop-
ment who had applied for a building or site
permit, but who had not obtained an approval of
the building permit or site permit before Septem-
ber 4, 2004, shall file the same report prior to
obtaining a final certificate of occupancy. Except
where an exemption otherwise applies under
this Chapter, the Director shall determine the
number of gross square feet of use in each
applicable economic activity category, disregard-
ing the number of pre-existing gross square feet
of use being retained in each such category,
apply the fee schedule, and determine the fee,
which shall be subject to any adjustments to the
TIDF Schedule that occur prior to final payment
of any TIDF due. The Director shall mail a copy
of his or her written determination to the spon-
sor. The sponsor may appeal the determination
of the number of gross square feet of use subject
to the fee, the economic activity category, or the
credits described in Section 38.6, to the MTA
Board. If the sponsor notifies the Director of its
acceptance of the determination, or does not
submit an appeal to the MTA Board within 15
days following the date of mailing of notice of the
Director's determination, the Director's determi-

Supp. No. 9, June 2007

3740.1

Transit Impact Development Fee

Sec. 38.7.

nation shall be final, and a notice of such deter-
mination shall be provided to DBI and the Trea-
surer. DBI may not issue a site or building
permit for any new development until it has
received notice from the MTA of the final deter-
mination of the amount of the Transit Impact
Development Fee to be paid. The MTA shall not
change the amount of the TIDF based on changes
to the amount of gross square feet of new devel-
opment during construction of the new develop-
ment unless the sponsor applies for a new build-
ing permit to reflect such changes. (Added by
Ord. 199-04, File No. 040141, App. 8/5/2004)
(Former Sec. 38.5 amended by Ord. 224-84, App.
5/15/84; Ord. 76-03, File No. 020592, App. 5/2/
2003; repealed by Ord. 199-04; Ord. 144-07, File
No. 070133, App. 6/29/2007)

SEC. 38.6. CREDITS.

In determining the number of gross square
feet of use to which the TIDF applies, the Direc-
tor shall provide a credit for prior uses elimi-
nated on the site. The credit shall be calculated
according to the following formula:

(a) There shall be a credit for the number of
gross square feet of use being eliminated by the
new development, multiplied by an adjustment
factor to reflect the difference in the fee rate of
the use being added and the use being elimi-
nated. The adjustment factor shall be deter-
mined by the Director as follows:

(1) The adjustment factor shall be a frac-
tion, the numerator of which shall be the fee rate
which the Director shall determine, in consulta-
tion with the Department of City Planning, if
necessary, applies to the economic activity cat-
egory in the most recent calculation of the TIDF
Schedule approved by the MTA Board for the
prior use being eliminated by the project.

(2) The denominator of the fraction shall be
the fee rate for the use being added, as set forth
in the most recent calculation of the TIDF Sched-
ule approved by the MTA Board.

(b) A credit for a prior use may be given only
if the prior use was active on the site within five
years before the date of the application for a
building or site permit for the proposed use.

(c) As of September 4, 2004, no sponsor
shall be entitled to a refund of the TIDF on a
building for which the fee was paid under the
former Chapter 38.

(d) Notwithstanding the foregoing, the ad-
justment factor shall not exceed one. (Added by
Ord. 199-04, File No. 040141, App. 8/5/2004)
(Former Sec. 38.6 added by Ord. 224-81, App.
5/5/81; amended by Ord. 76-03, File No. 020592,
App. 5/2/2003; repealed by Ord. 199-04; Ord.
144-07, File No. 070133, App. 6/29/2007)

SEC. 38.7. REVIEW OF FEE SCHEDULE.
A. Five- Year Review.

(1) Commencing five years after the effec-
tive date of this ordinance, and every five years
thereafter, or more often as the MTA Board may
deem necessary, the Director shall prepare a
report for the MTA Board and the Board of
Supervisors with recommendations regarding
whether the TIDF for each economic activity
category should be increased, decreased, or re-
main the same. In making such recommenda-
tions, and to the extent that new information is
available, the Director shall update the following
information and estimates that were used in the
TIDF Study to calculate the base service stan-
dard fee rates, and any other information that
the Director deems appropriate.

(a) The base service standard;

(b) Capital and operating costs;

(d) Passenger fsire revenue;

(e) Daily revenue service hours;

(f) Cost per revenue service hour;

(g) Trip generation rates by economic activ-
ity category;

(h) Cost per trip;

(i) Cost per gross square foot of develop-
ment by economic activity category;

(j) Net present value factor;

(k) Useful life period(s) for new develop-
ment by economic activity category;

Supp. No. 9, June 2007

[INTENTIONALLY LEFT BLANK]

Supp. No. 9, June 2007

3741

Transit Impact Development Fee

Sec. 38.8.

(1) Estimated annual rate of return on the
proceeds of the fee;

(m) The placement of particular land uses
in economic activity categories.

Where applicable, the Director shall use the
most recent MUNI information as submitted to
the National Transit Database. The denominator
of the revised base service standard shall be
calculated using the most recent estimates of
daily automobile and transit trips developed by
the City's Planning Department or other City or
state agency.

(2) In the report, the Director shall (a) iden-
tify the base service standard fee rates per gross
square foot in each economic activity category;
and (b) propose a fee for each economic activity
category.

(3) After receiving this report and making it
available for public distribution, the Board of
Supervisors shall conduct a public hearing in
which it shall consider the Director's report, hear
testimony from any interested members of the
public, and receive such other evidence as it may
deem necessary. At the conclusion of that hear-
ing, the Board shall make findings regarding
whether the revenues projected to be recovered
under the proposed Fee Schedule would be rea-
sonably related to and would not exceed the costs
incurred by MUNI to maintain the applicable
base service standard, in light of demands caused
by new development. The Board of Supervisors
shall then make any necessary or appropriate
revisions to the TIDF Schedule.

(4) The Board shall consider the Director's
report in light of the most recent five-year review
of the Housing Fee (Planning Code § 313.15),
Child Care Fee (Planning Code § 314.7) and
Inclusionary Housing Fee (Planning Code
§ 315.8(e)). MUNI and the Planning Department
shall make every effort to coordinate application
of the TIDF with the City's other developer fees
to avoid unnecessarily encumbering sponsors of
new development.

B. Principles in Calculating Fee. The
following principles have been and shall in the
future be observed in calculating the TIDF:

(1) Actual cost information provided to the
National Transit Database shall be used in cal-
culating the fee rates. Where estimates must be

made, those estimates should be based on such
information as the Director or his or her delegate
considers reasonable for the puipose.

(2) The rates shall be set at an actuarially
sound level to ensure that the proceeds, includ-
ing such earnings as may be derived from invest-
ment of the proceeds and amortization thereof,
do not exceed the capital and operating costs
incurred in order to maintain the applicable base
service standard in light of the demands created
by new development subject to the fee over the
estimated useful life of such new development.
For purposes of this Ordinance, the estimated
useful life of a new development is 45 years.
(Added by Ord. 199-04, File No. 040141, App.
8/5/2004) (Former Sec. 38.7 added by Ord. 224-
81, App. 5/5/81; repealed by Ord. 199-04)

SEC. 38.8. USE OF PROCEEDS FROM
TRANSIT IMPACT DEVELOPMENT FEE.

Money received from collection of the TIDF,
including earnings from investments of the TIDF,
shall be held in trust by the lYeasurer under
Section 66006 of the Mitigation Fee Act (Cal.
Gov. Code § 60000 et seq.) and shall be distrib-
uted according to the fiscal and budgetary pro-
visions of the San Francisco Charter and the
Mitigation Fee Act, subject to the following con-
ditions and limitations. TIDF funds may be used
to increase revenue service hours reasonably
necessary to mitigate the impacts of new non-
residential development on public transit and
maintain the applicable base service standard,
including, but not limited to: capital costs asso-
ciated with establishing new transit routes, ex-
panding transit routes, and increasing service on
existing transit routes, including, but not limited
to, procurement of related items such as rolling
stock, and design and construction of bus shel-
ters, stations, tracks, and overhead wires; opera-
tion and maintenance of rolling stock associated
with new or expanded transit routes or increases
in service on existing routes; capital or operating
costs required to add revenue service hours to
existing routes; and related overhead costs. Pro-
ceeds from the TIDF may also be used for all

Sec. 38.8.

San Francisco - Administrative Code

3742

costs required to administer, enforce, or defend
this ordinance. (Added by Ord. 199-04, File No.
040141, App. 8/5/2004) (Former Sec. 38.8 amended
by Ord. 224-84, App. 5/15/84; Ord. 76-03, File No.
020592, App. 5/2/2003; repealed by Ord. 199-04)

Sec. 38.8.5.

(Added by Ord. 224-84, App. 5/15/84; amended

by Ord. 76-03, File No. 020592, App. 5/2/2003;

repealed by Ord. 199-04, File No. 040141, App.

8/5/2004)

SEC. 38.9. RULES AND REGULATIONS.

The MTA is empowered to adopt such rules,
regulations, and administrative procedures as it
deems necessary to implement this Chapter. In
the event of a conflict between any MTA rule,
regulation or procedure and this ordinance, this
ordinance shall prevail. (Added by Ord. 199-04,
File No. 040141, App. 8/5/2004) (Former Sec.
38.9 added by Ord. 224-81, App. 5/5/81; amended
by Ord. 76-03, File No. 020592, App. 5/2/2003;
repealed by Ord. 199-04)

SEC. 38.10. NONPAYMENT,
RECORDATION OF NOTICE OF FEE AND
NOTICE OF DELINQUENCY,
ADDITIONAL REQUEST; NOTICE OF
ASSESSMENT OF INTEREST, AND
INSTITUTION OF LIEN PROCEEDINGS.

A. Upon the Director's determination that a
development is subject to this ordinance, he or
she may cause the County Recorder to record a
notice that such development is subject to the
TIDF The County Recorder shall serve or mail a
copy of such notice to the persons liable for
payment of the fee and the owners of the real
property described in the notice. The notice shall
include (1) a description of the real property
subject to the fee; (2) a statement that the
development is subject to the imposition of the
fee; and (3) a statement that the amount of the
fee to which the building is subject is determined
under Sections 38.4, 38.5 and related provisions
of this ordinance.

B. When the Director determines that the
fee is due, the Director shall notify the Treasurer,
who shall send a request for payment to the
sponsor.

C. Pajrment of the TIDF imposed by this
ordinance is delinquent if (1) in the case of a fee
not payable in installments, the fee is not paid
within 30 days of request for payment; (2) in the
case of a fee payable in installments (for a fee
determined prior to the effective date of this
ordinance), the fee installment is not paid within
30 days of the date fixed for pajnnent.

D. Where the TIDF is not paid within 30
days of request for payment, and where the
TIDF is payable in installments (for a fee deter-
mined prior to the effective date of this ordi-
nance) and any installment is not paid within 30
days of the date fixed for payment:

(1) The Treasurer or his or her designee
may cause the County Recorder to record a
notice of delinquent TIDF which shall include:
(a) the amount of the delinquent fee; (b) the
amount of the entire fee as reflected on the final
determination and a statement of whether the
fee is payable in installments; (c) the fee interest
and penalty then due; (d) the interest and pen-
alties that shall accrue on the delinquent fee if
not promptly paid; (e) a description of the real
property subject to the fee; (f) notification that if
the fee is not promptly paid proceedings will be
instituted before the Board of Supervisors to
impose a lien for the unpaid fee together with
any penalties and interest against the real prop-
erty described in the delinquency notice; (g)
notification of the fee payer's right to appeal the
delinquency determination to the MTA Board
within 15 days of the notice to the fee payer.

(2) Where the Treasurer determines to record
a notice of delinquency, he or she shall also serve
or mail the notice of delinquent TIDF to the
persons liable for the fee and to the owners of the
real property described on the notice.

(3) Where a notice of TIDF delinquency has
been recorded and the delinquent fee is paid or
the Treasurer's determination of delinquency is
reversed by appeal to the MTA Board or the
delinquency is otherwise cured, the Treasurer

3743

Transit Impact Development Fee

Sec. 38.11.

shall promptly cause the County Recorder to
record a notice that the TIDF delinquency has
been cured. Said notice shall include: (a) descrip-
tion of the real property affected; (b) the book
and page number of the county record wherein
the notice of delinquency was recorded; (c) the
date the notice of delinquency was recorded; (d)
notification that the delinquency reflected on the
notice of delinquency was cured and the date of
cure; (e) the amount of the entire fee as reflected
on the final determination; (f) if applicable, the
amount of the fee paid to effect the cure; and (g)
if applicable, a statement that the fee was pay-
able in installments and specification of the
delinquency installments cured; (h) if applicable,
the amount of the fee paid to effect the cure.

(4) The Treasurer shall serve or mail the
notice that the TIDF delinquency has been cured,
referred to in Section 38.10.D(3) of this ordi-
nance, to the persons liable for the fee and to the
owners of the real property described in such
notice.

E. Where the TIDF, not payable in install-
ments, is not paid within 30 days of request for
payment, and where the TIDF is payable in
installments (for a fee determined prior to the
effective date of this ordinance) and the install-
ment is not paid within 30 days of the date fixed
for payment, the Treasurer or his or her designee
shall mail an additional request for pajonent and
notice to the owner stating the following:

(1) If the amount due is not paid within 30
days of the date of mailing the additional request
and notice, interest at the rate of one and one-
half percent per month or portion thereof shall
be assessed upon the fee or installment due.

(2) With respect to both non-installment
and installment fees, if the account is not current
within 60 days of the date of mailing the addi-
tional request and notice, the Treasurer shall
institute proceedings to record a lien in accor-
dance with Section 38.11 for the entire balance
and any accrued interest against the property
upon which the fee is owed.

F. Thirty days after mailing the additional
request for payment, the Treasurer may assess
interest as specified in Paragraph 38.10.E(1)

above. Sixty days after mailing the additional
request for payment and notice, the '^Preasurer
may institute lien proceedings as specified in
Section 38.11.

G. The Treasurer shall submit a report to
the Director on a quarterly basis of all fees
collected for the previous quarter, which report
shall include the property address, name of spon-
sor or owner of the property, and the amount of
the fee, including interest, if any, collected. (Added
by Ord. 199-04, File No. 040141, App. 8/5/2004)
(Former Sec. 38.10 amended by Ord. 18-87, App.
1/29/87; Ord. 322-00, File No. 001917, App. 12/
28/2000; Ord. 76-03, File No. 020592, App. 5/2/
2003; repealed by Ord. 199-04)

SEC. 38.11. LIEN PROCEEDINGS;
NOTICE.

If payment of the fee not payable in install-
ments is not received within 30 days following
mailing of the additional request and notice, or if
with respect to installment payments, the ac-
count is not brought current within 60 days of
the mailing of the additional request and notice,
the Treasurer shall initiate proceedings in accor-
dance with Article XX of Chapter 10 of the San
Francisco Administrative Code to make the en-
tire unpaid balance of the TIDF, including inter-
est on the unpaid fee or installments, a lien
against all parcels used for the development
project. The Treasurer shall send all notices
required by that Ai'ticle to the owner of the
property as well as the sponsor, The lYeasurer
shall also prepare a preliminary report notifying
the sponsor of a hearing to confirm such report
by the Board of Supervisors at least 10 days
before the date of the hearing. The report to the
sponsor shall contain the sponsor's name, a de-
scription of the sponsor's development project, a
description of the parcels of real property to be
encumbered as set forth in the Assessor's Map
Books for the current year, a description of the
alleged violation of this ordinance, and shall fix a
time, date, and place for hearing. The IVeasurer
shall cause this report to be mailed to the spon-
sor and each owner of record of the parcels of real
property subject to lien. Except for the release of
the lien recording fee authorized by Administra-

Sec. 38.11.

San Francisco - Administrative Code

3744

tive Code Section 10.237, all sums collected by
the Tax Collector under this ordinance shall be
held in trust by the Treasurer and distributed as
provided in Section 38.6 of this Chapter. (Added
by Ord. 199-04, File No. 040141, App. 8/5/2004)
(Former Sec. 38.11 amended by Ord. 491-85,
App. 10/31/85; Ord. 322-00, File No. 001917,
App. 12/28/2000; Ord. 76-03, File No. 020592,
App. 5/2/2003; repealed by Ord. 199-04)

SEC. 38.12. MANNER OF GIVING
NOTICES.

Any notice required to be given under this
ordinance to a sponsor or owner shall be suffi-
ciently given or served upon the sponsor or
owner for all purposes under this ordinance if
personally served upon the sponsor or owner, or
if deposited, postage prepaid, in a post office
letter box addressed in the name of the sponsor
or owner at the official address of the sponsor or
owner maintained by the Tax Collector of the
City and County for the mailing of tax bills; or, if
no such address is available, to the sponsor at
the address of the development project, and to
the applicant for the site or building permit at
the address on the permit application. (Added by
Ord. 199-04, File No. 040141, App. 8/5/2004)
(Former Sec. 38.12 added as Sec. 38.17 by Ord.
224-81, App. 5/5/81; renumbered 38.12 by Ord.
322-00, File No. 001917, App. 12/28/2000; re-
pealed by Ord. 199-04. Prior Sec. 38.12 was
repealed by Ord. 322-00.)

SEC. 38.13. CHARITABLE EXEMPTIONS.

A. When the property or a portion thereof
will be exempt from real property taxation or
possessory interest taxation under California
Constitution, Article XIII, Section 4, as imple-
mented by California Revenue and Taxation Code
Section 214, then the sponsor shall not be re-
quired to pay the TIDF attributed to the new
development in the exempt property or portion
thereof, so long as the property or portion thereof
continues to enjoy the aforementioned exemp-
tion from real property taxation.

B. The TIDF shall be calculated for exempt
structures in the same manner and at the same
time as for all other structures. The sponsor may

apply to the MTA for an exemption under the
standards set forth in subsection A above. In the
event the Agency determines that the sponsor is
entitled to an exemption under this Section, it
shall cause to be recorded a notice advising that
the TIDF has been calculated and imposed upon
the structure and that the structure or a portion
thereof has been exempted from pa5rment of the
fee but that if the property or portion thereof
loses its exempt status during the 10-year period
commencing with the date of the imposition of
the TIDF, then the building owner shall be
subject to the requirement to pay the fee.

C. If within 10 years from the date of the
issuance of the Certificate of Final Completion
and Occupancy, the exempt property or portion
thereof loses its exempt status, then the sponsor
shall, within 90 days thereafter, be obligated to
pay the TIDF, reduced by an amount reflecting
the duration of the charitable exempt status in
relation to the useful life estimate used in deter-
mining the TIDF for that structure. The amount
remaining to be paid shall be determined by
recalculating the fee using a useful life equal to
the useful life used in the initial calculation
minus the number of years during which the
exempt status has been in effect. After the TIDF
has been paid, the Agency shall record a release
of the notice recorded under subsection B. above.

D. In the event a property owner fails to
pay a fee within the 90-day period, a notice for
request of payment shall be served by the Trea-
surer under Section 38.10.B of this Chapter.
Thereafter, upon nonpajrment, a lien proceeding
shall be instituted under Section 38.11 of this
Chapter. (Added by Ord. 199-04, File No. 040141,
App. 8/5/2004) (Former Sec. 38.13 added as Sec.
38.18 by Ord. 224-81, App. 5/5/81; renumbered
38.13 by Ord. 322-00, File No. 001917, App.
12/28/2000; repealed by Ord. 199-04. Prior Sec.
38.13 was repealed by Ord. 322-00.)

SEC. 38.14. SEVERABILITY.

The provisions of this ordinance shall not
apply to any person, association, corporation or
to any property as to whom or which it is beyond
the power of the City to impose the fee herein
provided. If any sentence, clause, section or part

3745 Transit Impact Development Fee Sec. 38.14.

of this ordinance, or any fee imposed upon any
person or entity is found to be unconstitutional,
illegal or invalid, such unconstitutionality, ille-
gality, or invalidity shall affect only such clause,
sentence, section or part of this ordinance, or
person or entity; and shall not affect or impair
any of the remaining provisions, sentences,
clauses, sections or other parts of this ordinance,
or its effect on other persons or entities. It is
hereby declared to be the intention of the Board
of Supervisors of the City that this ordinance
would have been adopted had such unconstitu-
tional, illegal or invalid sentence, clause, section
or part of this ordinance not been included herein;
or had such person or entity been expressly
exempted from the application of this ordinance.
To this end the provisions of this ordinance are
severable. (Added by Ord. 199-04, File No. 040141,
App. 8/5/2004) (Former Sec. 38.14 added by Ord.
224-81, App. 5/5/81; repealed by Ord. 322-00,
File No. 001917, App. 12/28/2000; repealed by
Ord. 199-04)

Sec. 38.15.

(Added by Ord. 224-81, App. 5/5/81; repealed by

Ord. 322-00, File No. 001917, App. 12/28/2000)

Sec. 38.16.

(Added by Ord. 224-81, App. 5/5/81; repealed by

Ord. 322-00, File No. 001917, App. 12/28/2000)

Sec. 38.17.

(Added by Ord. 224-81, App. 5/5/81; renumbered
as Sec. 38.12 by Ord. 322-00, File No. 001917,
App. 12/28/2000)

Sec. 38.18.

(Added by Ord. 224-81, App. 5/5/81; renumbered
as Sec. 38.13 by Ord. 322-00, File No. 001917,
App. 12/28/2000)

Sec. 38.45.

(Added by Ord. 223-84, App. 5/10/84; amended

by Ord. 76-03, File No. 020592, App. 5/2/2003;

repealed by Ord. 199-04, File No. 040141, App.

8/5/2004)

[The next page is 3761]

San Francisco - Administrative Code

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CHAPTER 39: [RESERVED]

Sec. 39.1.

(Added by Ord. 401-96, App. 10/21/96; amended
by Ord. 274-97, App. 7/3/97; repealed by Ord.
171-03. File No. 030422, App. 7/3/2003)

Sec. 39.2.

(Added by Ord. 401-96, App. 10/21/96; amended
by Ord. 274-97, App. 7/3/97; Ord. 361-98, App.
12/11/98; Ord. 2-00, File No. 992000, App. 1/13/
2000; repealed by Ord. 171-03. File No. 030422,
App. 7/3/2003)

Sec. 39.3.

(Added by Ord. 401-96, App. 10/21/96; amended
by Ord. 274-97, App. 7/3/97; repealed by Ord.
171-03. File No. 030422, App. 7/3/2003)

Sec. 39.8.

Sec. 39.9.

(Added by Ord. 274-97, App. 7/3/97; repealed by

Ord. 171-03. File No. 030422, App. 7/3/2003)

Sec. 39.10.

(Added by Ord. 274-97, App. 7/3/97; repealed by

Ord. 171-03. File No. 030422, App. 7/3/2003)

Sec. 39.4.

(Added by Ord. 401-96, App. 10/21/96; amended
by Ord. 274-97, App. 7/3/97; repealed by Ord.
171-03. File No. 030422, App. 7/3/2003)

Sec. 39.5.

(Added by Ord. 401-96, App. 10/21/96; amended
by Ord. 274-97, App. 7/3/97; Ord. 231-99, File No.
991246, App. 8/20/99; Ord. 2-00, File No. 992000,
App. 1/13/2000; repealed by Ord. 171-03. File No.
030422, App. 7/3/2003)

Sec. 39.6.

Sec. 39.7.

(Added by Ord. 401-96, App. 10/21/96; amended
by Ord. 274-97, App. 7/3/97; Ord. 2-00, File No.
992000, App. 1/13/2000; repealed by Ord. 171-03.
File No. 030422, App. 7/3/2003)

[The next page is 3771]

3761

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CHAPTER 40: HOUSING CODE ENFORCEMENT LOAN PROGRAM

Article Page

I. IN GENERAL 3773

II. RESPONSIBILITIES OF BOARD OF SUPERVISORS 3781

IH. ADMINISTRATION OF PROGRAM 3791

IV. LOAN COMMITTEE 3805

V. REHABILITATION FINANCING 3815

VI. FINANCING LIMITATIONS 3825

VEL TERMS OF LOANS 3835

VIIL MISCELLANEOUS PROVISIONS 3847

3771

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ARTICLE I: IN GENERAL

Sec. 40.1. Purpose.

Sec. 40.2. Definitions.

Sec. 40.3. References to Public Officials

and Public Agencies.

SEC. 40.1. PURPOSE.

This Chapter provides for the administration
and financing of a systematic Housing Code
Enforcement Loan Program (HELP) in the City
and County of San Francisco. The provisions of
this Chapter and Chapter 32 of the San Fran-
cisco Administrative Code constitute the City
and County's comprehensive residential rehabili-
tation financing program adopted pursuant to
the Marks-Foran Residential Rehabilitation Act
of 1973, Section 37910, et seq. of the Health and
Safety Code.

The purpose of HELP is to improve the
condition of housing for the public, especially low
and moderate income tenants presently residing
in apartments and residential hotels, and to
improve the quality of life in San Francisco by
providing a means through which owners of
deteriorating residential property may obtain
financial assistance to rehabilitate their prop-
erty and maintain it in a residential use, thus
preserving and enhancing the City and County's
low income housing stock.

In establishing a systematic Housing Code
Enforcement Loan Program, the Board of Super-
visors finds and declares that:

(a) There is a shortage in San Francisco of
safe, decent, and sanitary housing.

(b) The preservation of existing housing is
the most effective way to provide decent housing
in the City and County of San Francisco.

(c) The cost of repairing and upgrading sub-
standard residential structures is generally far
less costly than demolition and replacement hous-
ing.

(d) Rehabilitation of existing housing re-
sults in less personal hardship, involves less
overall social costs, and retains neighborhood
identity.

(e) A city/countAAvide program of systematic
code enforcement in all multifamily buildings
has been found to be a reliable raanner in which
to determine which of these existing residential
structures are substandard and in need of reha-
bilitation.

(f) The cost of financing rehabilitation of
such structures is a major and substantial factor
affecting the supply and cost of decent, safe, and
sanitary housing in San Francisco.

(g) The revenue bonds provided for in this
Chapter will substantially lower the cost of fi-
nancing such rehabilitation

(h) This lowered cost of rehabilitation financ-
ing will increase the supply of adequate housing
by encouraging rehabilitation rather than demo-
lition of these substandard buildings.

(i) The lowered cost of rehabilitation financ-
ing will increase the supply of adequate housing
by speeding the rehabilitation of these substan-
dard buildings.

(j) This lowered cost of rehabilitation financ-
ing will lower the cost of decent, safe, and sani-
taiy housing in San Francisco.

(k) This lowered cost of rehabilitation financ-
ing is in the public interest and serves a public
purpose by lowering the cost of maintaining an
adequate supply of safe, decent, and sanitary
housing in the City and County of San Francisco.

(1) A public purpose is also served by using
rehabilitation financing, made available pursu-
ant to this Chapter, to encourage voluntary code
compliance in multi-family buildings located in
San Francisco's Neighborhood Strateg}^ Areas.

(m) Pursuant to regulations of the United
States Department of Housing and Urban Devel-
opment, the City and County of San Francisco
has designated a nuraber of Neighborhood Strat-
egy Areas throughout the City and County. Such
areas have been selected for comprehensive re-

3773

Sec. 40.1.

San Francisco - Administrative Code

3774

vitalization programs using a variety of local,
state and federal programs; to upgrade and sta-
bilize these residential communities.

(n) The City and County's goal of revitaliza-
tion of these areas will be promoted if substan-
dard multi-family buildings in the areas are
brought into code compliance in advance of the
time that these buildings would ordinarily be
required to meet rehabilitation standards under
a systematic code enforcement program.

(o) Allowing owners of multi-family build-
ings in such areas, who request a binding inspec-
tion of their buildings, to apply for rehabilitation
financing pursuant to this Chapter will encour-
age voluntary code compliance.

(p) Encouraging voluntary code compliance
for multi-family buildings located in Neighbor-
hood Strategy Areas serves a public purpose in
that it accelerates code compliance in buildings
which will eventually be subject to a systematic
code enforcement program and furthers the City
and County's commitment to revitalize various
neighborhoods throughout the City and County.

(q) The shortage of safe, decent and sani-
tary housing is especially acute for low and
moderate income tenants of apartments and
residential hotels.

(r) A public purpose is also served by mini-
mizing the displacement of existing tenants of
buildings rehabilitated under this program by
establishing effective tenant protections and by
prohibiting the use of HELP loans for the con-
version of multifamily housing to condominium
or commercial uses. (Added by Ord. 482-80, App.
10/17/80)

SEC. 40.2. DEFINITIONS.

Unless the context otherwise requires, the
following definitions govern the construction of
this Chapter:

(a) "Bonds" means any bonds, notes, in-
terim certificates, debentures, or other obliga-
tions issued by the City and County pursuant to
this Chapter and which are payable exclusively
from revenues, as defined, and from any other

funds specified in this Chapter upon which the
bonds may be made a charge and from which
they are payable.

(b) "City" means the City and County of San
Francisco.

(c) "Commercial Use" means any nonresi-
dential use including, but not limited to, a store,
office, manufacturing facility, warehouse, or other
business facility. For the purpose of this Chapter,
commercial use shall include a tourist facility or
tourist hotel.

(d) "Conventional HELP Loan" means any
loan made for the purpose of meeting rehabilita-
tion standards pursuant to the provisions of this
Chapter.

(e) "Financing" means the lending of mon-
eys or any other thing of value for the purpose of
repair and improvement of a residence necessary
to meet rehabilitation standards.

(f) "Housing Code Enforcement Loan Pro-
gram" or "HELP" has the same meaning as
"program."

(g) "Loan Committee" means the committee
established in accordance with Section 40.13.

(h) "Loan Fund" means the fund estab-
lished with the proceeds of bonds issued pursu-
ant to the provisions of this Chapter or any other
fund established for the purpose of making loans
to property owners pursuant to this Chapter.

(i) "Low and Moderate Income Household"
means a household whose income does not ex-
ceed 120 percent of the median income for the
City and County by family size.

(j) "Multi-Family Buildings" means build-
ings containing three or more dwellings units, as
defined in the San Francisco Housing Code, or
more than six guest rooms as defined in the San
Francisco Housing Code.

(k) "Neighborhood Strategy Area" means an
area designated by the City and County as a
"Neighborhood Strategy Area" as that term is
defined in regulation issued by the United States
Department of Housing and Urban Develop-
ment.

3775 Housing Code Enforcement Loan Program - In General Sec. 40.3.

(1) "Participating Party" means any person,
company, corporation, partnership, firm or other
entity or group of entities requiring financing for
the purpose of meeting rehabihtation standards
pursuant to the provisions of this Chapter,

(m) "Program" means the systematic Hous-
ing Code Enforcement Loan Program or HELP
described in this Chapter and includes, but is not
hmited to, the provisions for code enforcement
and financing residential rehabilitation in a city-
wide program of systematic enforcement of reha-
bilitation standards in all multi-family build-
ings.

(n) "Rehabilitation Standards" means the
standards established in the City Housing Code
and other applicable codes relating to the physi-
cal conditions of existing residential structures.

(o) "Residence" means real property im-
proved with a residential structure.

(p) "Residential Rehabilitation" means the
repairs and improvements to a substandard resi-
dential structure necessary to meet rehabilita-
tion standards.

(q) "Systematic Enforcement" means the en-
forcement of rehabilitation standards in accor-
dance with a systematic program of making
inspections of all multi-family dwelling struc-
tures in accordance with objective criteria for
selection or order of selection of dwelling struc-
tures to be inspected. (Added by Ord. 482-80,
App. 10/17/80)

SEC. 40.3. REFERENCES TO PUBLIC
OFFICIALS AND PUBLIC AGENCIES.

(a) Unless otherwise indicated, all public
officials and public agencies named in this Chap-
ter are officials and agencies of the City and
County.

(b) Whenever a City and County official is
referred to in this Chapter, the reference in-
cludes that official and his or her designee or
designees.

(c) All references to the Charter or to ordi-
nances are references to the Charter or to ordi-
nances of the City and County (Added by Ord.
482-80, App. 10/17/80)

[The next page is 37811

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ARTICLE II: RESPONSIBILITIES OF BOARD OF SUPERVISORS

Sec. 40.4. Issuance of Bonds.

Sec. 40.5. Approval of Fees, Charges and

Interest Rates on Financing.
Sec. 40.6. Revision of Loan Charges.

SEC. 40.4. ISSUANCE OF BONDS.

The Board of Supervisors may from time to
time by resolution authorize procedures for the
issuance of bonds for the purpose of establishing
a loan fund to be used to assist property owners
with the rehabilitation of residential structures
as required in a City and County-wide program
of systematic enforcement of rehabilitation stan-
dards in multi-family buildings. The repayment
of principal, interest and other charges on the
loans to the property owners, together with such
other moneys as the Board of Supervisors may,
in its discretion, make available therefor, shall
be the sole source of funds pledged by the City
and County for repayment of such bonds.

Bonds issued under the provisions of this
Chapter shaill not be deemed to constitute a debt
or liability of the City and County or a pledge of
the faith and credit of the City and County, but
shall be payable solely from the funds specified
in this Section. The issuance of such bonds shall
not directly, indirectly or contingently obligate
the Board of Supervisors to levy or to pledge any
form of taxation whatever therefore, or to make
any appropriation for their payment. (Added by
Ord. 482-80, App. 10/17/80)

SEC. 40.6. REVISION OF LOAN
CHARGES.

(a) Shall be adopted by the Board of Super-
visors after a public hearing preceded by public
notice to affected parties; and

SEC. 40.5. APPROVAL OF FEES,
CHARGES AND INTEREST RATES ON
FINANCING.

The Board of Supervisors shall, upon the
recommendation of the Chief Administrative Of-
ficer, approve by resolution prior to levy, all fees,
charges and interest rates to be charged partici-
pating parties in connection with financing resi-
dential rehabihtation. (Added by Ord. 482-80,
App. 10/17/80)

[The next page is 3791]

3781

San Francisco - Administrative Code

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ARTICLE III: ADMINISTRATION OF PROGRAM

Sec. 40.7. Responsibility for

Administration of the Program.
Sec. 40.8. Adoption of Objective Selection

Criteria for Systematic

Enforcement of Rehabilitation

Standards.
Sec. 40.9. Inspection of Buildings in

Neighborhood Strategy Areas.
Sec. 40.10. Rules and Regulations.
Sec. 40.11. Management of Bond Proceeds.

Sec. 40.12. Recommendation of Fees,

Charges, and Interest Rates on
Financing.

Sec. 40.13. Notice of Defaults and
Foreclosures.

SEC. 40.7. RESPONSIBILITY FOR
ADMINISTRATION OF THE PROGRAM.

The Chief Administrative Officer shall be
responsible for administration of all aspects of
the Housing Code Enforcement Loan Program
except those aspects for which responsibility is
specifically retained by the Board of Supervisors
or assigned by the Board of Supervisors to an-
other City and County agency. The Chief Admin-
istrative Officer, and each City and County agency
assigned responsibilities by or pursuant to this
Chapter, shall have all such authority as may be
reasonably necessary to carry out those respon-
sibilities. WTiile retaining overall responsibility
for administration of the program, the Chief
Administrative Officer shall utilize the services
of the Bureau of Building Inspection of the
Department of Public Works in connection with
the code enforcement aspects of the program;
and the services of the Real Estate Department
in connection with the rehabilitation financing
aspects of the program. The Chief Administra-
tive Officer may also request the assistance of
any other City and County agency in meeting his
or her responsibilities under this program. (Added
by Ord. 482-80, App. 10/17/80)

SEC. 40.8. ADOPTION OF OBJECTIVE
SELECTION CRITERIA FOR
SYSTEMATIC ENFORCEMENT OF
REHABILITATION STANDARDS.

(a) The Chief Administrative Officer shall
adopt objective selection criteria for the system-
atic enforcement of rehabilitation standards in
all multi-family buildings. Such criteria shall be
recommended to the Chief Administrative Of-
ficer by the Superintendent of the Bureau of
Building Inspection.

(b) Criteria for the order of selection of
multi-family buildings to be inspected shall be
based upon the seriousness and frec[uency of
occurrence of Housing Code and other City and
County Code violations constituting a threat to
public health and safety. Such hazardous condi-
tions include, but are not limited to, lack of
proper egress, improper use and occupancy, stor-
age of flammable or combustible materials, and
lack of safety devices such as smoke and heat
detection devices, fire alarms, stairway enclo-
sures, and sprinkler systems. Data on hazardous
conditions in these buildings shall be obtained
from a survey conducted by the Division of
Apartment Plouse and Hotel Inspection of the
Bureau of Building Inspection which was con-
ducted in 1969 and which is periodically up-
dated.

(c) Before the Superintendent of the Bu-
reau of Building Inspection recommends the
adoption of objective selection criteria, the Su-
perintendent shall conduct a public hearing at
which the objective selection criteria will be
discussed.

(d) At least 10 days preceding the hearing,
the Superintendent shall make proposed objec-
tive selection criteria available for public inspec-
tion at the Bureau of Building Inspection.

(e) At least 10 days preceding the hearing,
notice of the hearing shall be published once in a
newspaper of general circulation published in

3791

Sec. 40.8.

San Francisco - Administrative Code

3792

San Francisco. The notice shall state the time,
place and purpose of the hearing. The notice
shall also state that the Superintendent's pro-
posed objective selection criteria are available
for public inspection at the Bureau of Building
Inspection.

(f) After the Chief Administrative Officer
has adopted objective selection criteria, the fol-
lowing procedure must be observed before the
Chief Administrative Officer can change the cri-
teria:

(1) A copy of the proposed change shall be
made available for public inspection at the Bu-
reau of Building Inspection at least 10 days
before a proposed change can become final.

(2) Notice of the proposed change must be
published once in a newspaper of general circu-
lation published in San Francisco at least 10
days before the proposed change can become
final. The notice shall state the nature of the
proposed change and the fact that the text of the
proposed change is available for public inspec-
tion at the Bureau of Building Inspection.

(3) The Superintendent of the Bureau of
Building Inspection shall mail a copy of the
notice specified in Section 40.8(f)(2) to all per-
sons who have submitted a request in writing to
the Superintendent that they receive copies of
such notices. (Added by Ord. 482-80, App. 10/17/
80)

SEC. 40.9. INSPECTION OF BUILDINGS
IN NEIGHBORHOOD STRATEGY AREAS.

(a) An owner of a multi-family building
located in a Neighborhood Strategy Area may
request that his or her building be inspected, for
the purpose of determining if it meets rehabili-
tation standards, in advance of the time that
such building would ordinarily be inspected pur-
suant to the criteria established in Section 40.8.
The owner shall submit a written request for this
inspection to the Superintendent of the Bureau
of Building Inspection. After receiving such a
request, the Superintendent shall have the build-
ing inspected and, if the building is found to be
substandard, the owner will be eligible to apply
for a loan pursuant to this Chapter.

(b) Such inspections will be binding on the
owner of the building even if this owner is later
found not to be eligible for a loan pursuant to this
Chapter.

(c) The Superintendent of the Bureau of
Building Inspection shall include notice of the
availability of the inspection program described
in this Section in the annual billing for the
permit of occupancy license fee for multi-family
buildings. Such notice shall state that owners
who request these inspections will be eligible to
apply for rehabilitation financing pursuant to
this part. The notice shall plainly describe the
Superintendent's evaluation of the possibility
that in the next succeeding year funds will not be
available to fund all applications meeting the
program criteria in a timely fashion, and that in
such case priority for buildings qualifying under
this Section will be given to those buildings in
which 50 percent or more of the units, as shown
in the loan application, are such that the units
meet the definition of "low income housing stock"
in Chapter 13 (Subdivision Code) of the Munici-
pal Code of the City and County of San Fran-
cisco. The notice shall also state that the bound-
aries of Neighborhood Strategy Areas will be
available for public inspection at the Bureau of
Building Inspection. The notice shall also state
that the inspections will be binding on the own-
ers. (Added by Ord. 482-80, App. 10/17/80)

SEC. 40.10. RULES AND REGULATIONS.

(a) The Chief Administrative Officer shall
adopt such rules and regulations as he or she
may deem appropriate to carry out the provi-
sions of this Chapter. A copy of all such rules and
regulations shall be available for review by the
public during regular business hours in the office
of the Chief Administrative Officer, the office of
the Clerk of the Board of Supervisors, the De-
partment of Public Works, and in every other
of^ce established for the purpose of carrying out
this program.

(b) Before the Chief Administrative Officer
adopts these rules and regulations, the Chief
Administrative Officer or his or her delegate
shall conduct a public hearing at which the rules
and regulations will be discussed.

3793

Housing Code Enforcement Loan Program
Administration of Program

Sec. 40.13.

(c) At least 10 days preceding the hearing,
the Chief Administrative Officer shall make the
proposed rules and regulations available for pub-
lic inspection at the Bureau of Building Inspec-
tion.

(d) At least 10 days preceding the hearing,
notice of the hearing shall be published once in a
newspaper of general circulation published in
San Francisco. The notice shall state the time,
place and purpose of the hearing. The notice
shall also state that the proposed rules and
regulations are available for public inspection at
the Bureau of Building Inspection.

(e) After the Chief Administrative Officer
has adopted rules and regulations, the following
procedure must be observed before the Chief
Administrative Officer can change the rules and
regulations:

(1) A copy of the proposed change shall be
made available for public inspection at the Bu-
reau of Building Inspection at least 10 days
before a proposed change can become final.

(3) The Superintendent of the Bureau of
Building Inspection shall mail a copy of the
notice specified in Section 40.9(e)(2) to all per-
sons who have submitted a request in writing to
the Superintendent that they receive copies of
such notices. (Added by Ord. 482-80, App. 10/17/
80)

SEC. 40.11. MANAGEMENT OF BOND
PROCEEDS.

Unless provided otherwise in any bond reso-
lution adopted pursuant to the provisions of this
Chapter, the Chief Administrative Officer, acting
on the recommendation of the Controller:

(a) May invest and reinvest both the bond
proceeds and the revenues from the financing of
residential rehabilitation; and

(b) May manage fiscally the proceeds of
bonds issued for the purpose of establishing a
residential rehabilitation loan fund; or

(c) Together with the Purchaser may enter
into contractual arramgement with private lend-
ing institutions or trust companies to manage
the residential rehabilitation loan fund, includ-
ing investment and reinvestment of the funds,
disbursements from the fund and collection of
revenues. (Added by Ord. 482-80, App. 10/17/80)

SEC. 40.12. RECOMMENDATION OF
FEES, CHARGES, AND INTEREST RATES
ON FINANCING.

The Chief Administrative Officer, acting on
the advice of the Controller, shall recommend to
the Board of Supervisors for adoption:

(a) The fees, charges and interest rates which
will be charged participating parties in connec-
tion with financing residential rehabilitation;
and

SEC. 40.13. NOTICE OF DEFAULTS AND
FORECLOSURES.

When there is a default on a conventional
HELP loan secured by a deed of trust naming the
City and County as a beneficiary and the prop-
erty becomes subject to foreclosure procedures,
the Chief Administrative Officer shall so inform
the Loan Committee. (Added by Ord. 482-80,
App. 10/17/80)

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ARTICLE IV: LOAN COMMITTEE

Sec. 40.14. Loan Committee — Membership.
Sec. 40.15. Loan Committee — Functions.

SEC. 40.14. LOAN COMMITTEE-
MEMBERSHIP.

There shall be a Loan Committee, whose
members shall serve without compensation, con-
sisting of the following members, all of whom
shall be residents of the City and County:

(a) One individual, with permanent resi-
dence as a tenant in the City and County, ap-
pointed by the Mayor.

(b) One individual, with permanent resi-
dence as a tenant in the City and County, ap-
pointed by the President of the Board of Super-
visors.

(d) One individual qualified in the field of
real estate lending and financing who shall be
appointed by the Chief Administrative Officer.

(e) One individual who is a permanent em-
ployee of the Real Estate Department. (Added by
Ord. 482-80, App. 10/17/80)

SEC. 40.15. LOAN COMMITTEE-
FUNCTIONS.

The functions of the Loan Committee are as
follows:

(b) The Loan Committee shall review and
recommend approval or denial of applications
required to be considered by the Loan Commit-
tee by or pursuant to this Chapter.

(c) The Loan Committee shall operate in a
manner consistent with by-laws which shall be
developed by the Loan Committee and approved
by the Chief Administrative Officer, and the

recommendation of approval or denial of loan
applications shall be in accordance with the
requirements contained in, or adopted pursuant
to, this Chapter. (Added by Ord. 482-80, App.
10/17/80)

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ARTICLE V: REHABILITATION FINANCING

Sec. 40.16. Eligibility for Loan.

SEC. 40.16. ELIGIBILITY FOR LOAN.

(a) Each owner of a residential multi-family
building inspected pursuant to a systematic pro-
gram of enforcement of rehabilitation standards
or pursuant to the voluntary inspection program
defined in Section 40.9 of this Chapter is eligible
for a loan, provided the owner demonstrates to
the satisfaction of the Chief Administrative Of-
ficer the ability to repay such a loan; applies for
the loan within a time period to be designated by
the Chief Administrative Officer; and can meet
the other requirements of this Chapter. The
property owner shall agree to all conditions of
the loan agreement as a prerequisite to obtain-
ing a loan. No elective officer of the state or any
of its subdivisions shall be eligible to receive a
loan under the provisions of this Chapter.

(b) No owner shall be eligible for a loan
under the program if the owner has in the 12
months preceding the date of application:

(1) Attempted to, or intentionally did cause
any tenant to vacate his or her premises in the
subject building, other than for those causes
defined as just cause by the San Francisco Rent
Stabilization and Arbitration Ordinance or other
ordinance or general law limitation on cause for
eviction as may be applicable to the building; or

(2) Attempted to, or intentionally did cause
any tenant to vacate his or her premises in the
subject property by the use of coercion, intimida-
tion, harassment, undue influence, or any means
contrary to law; or

(3) Caused the conversion of any residential
hotel unit to any other use or any apartment unit
to tourist hotel unit use in the subject building
subsequent to November 23, 1979 in violation of
the San FrEincisco Residential Hotel Unit Con-
version, Demolition and Change in Use Ordi-
nance, or such other ordinance or law as may be
applicable to the conversion of such units at the
time of such conversion.

Any owner found ineligible for any of the
above reasons may not reapply for a loan under
this Chapter for a period of 18 months from the
date of final denial. Each loan applicant shall be
required as part of the application process to sign
an affidavit swearing under penalty of perjury
that he or she has not engaged in any of the
prohibited practices specified herein during the
12 months preceding the date of application.

(c) In any year in which the Chief Adminis-
trative Officer determines that in the next suc-
ceeding year funds will not be available to fund
all applications meeting the program criteria in
a timely fashion, priority shall be given to those
buildings inspected pursuant to Section 40.8,
and second priority to those buildings qualifying
under Section 40.9 in which 50 percent or more
of the units, as shown in the loan application, are
such that the units meet the definition of "low
income housing stock" in Chapter 13 (Subdivi-
sion Code) of the Municipal Code of the City and
County of San Francisco.

(d) Any owner who is denied a loam by the
Chief Administrative Officer on the grounds that
the owner does not meet eligibility requirements
may appeal the decision to the Loan Committee.
Any tenant of a building for which approval has
been granted may appeal the approval on grounds
of ineligibility under Subdivision (b) of this Sec-
tion. The Loan Committee shall review the ap-
plication for a loan and make a recommiendation
regarding approval or denial to the Chief Admin-
istrative Officer.

In reviewing the application, the Loan Com-
mittee shall give due consideration to the need
for the loan to be made in order to accomiplish the
purposes of the pro^jram, the risks to the City
and County of granting the loan, and the ability
of the property to support the loan as well as the
reasons for approval or denial of the application
by the Chief Administrative Officer. If the Chief
Administrative Officer does not accept the rec-
ommendation of the loan committee, he or she

3815

Sec. 40.16. San Francisco -Administrative Code 3816

shall give written reasons for the refusal to
approve or deny the loan. (Added by Ord. 482-80,
App. 10/17/80)

[The next page is 3825]

ARTICLE VI: FINANCING LIMITATIONS

Sec. 40.17. Maximum Indebtedness on

Property.
Sec. 40.18. Maximum Amount of Loan.
Sec. 40.19. Limitation Based on Fair

Market Value of Work.

SEC. 40.17. MAXIMUM INDEBTEDNESS
ON PROPERTY.

(a) Such loans are made for the purpose of
rehabilitating the property for residential pur-
pose;

(b) There is demonstrated need for such
higher limit; and

(c) There is a high probability that the
value of the property will not be impaired during
the term of the loan. (Added by Ord. 482-80, App.
10/17/80)

SEC. 40.18. MAXIMUM AMOUNT OF
LOAN.

The loan shall be made only for the purpose
of meeting rehabilitation standards and the maxi-
mum amounts shall be as follows: Three units,
$10,000 per unit; four or more units, $7,500 per
unit; and guest rooms, as defined in Section
203.7 of the Housing Code, $2,500 per unit. The
Chief Administrative Officer may approve a loan
in excess of these amounts following guidelines
established by the Chief Administrative Officer
only where such excess financing will result in
the creation of additional housing units by mak-
ing habitable a multi-family building which has
been abandoned or vacated for a period of one

year prior to the date of application, or by the
conversion of a multi-family building or portion
thereof from commercial use to noncommercial
use; provided, that in no case may the loan
exceed $17,500 per unit for dwelling units and
$11,500 per unit for ^^est rooms. (Added by Ord.
482-80, App. 10/17/80)

SEC. 40.19. LIMITATION BASED ON
FAIR MARKET VALUE OF WORK.

(a) Prior to granting of any loan over $20,000
under this Chapter, a qualified estimator hired
by the borrower will make an on-premises inspec-
tion of the applicant's property and certify, in
writing, the fair market value of the recom-
mended work as detailed in the job specifica-
tions.

(b) Where loan is under $20,000 and low bid
exceeds estimate of building inspector by 10
percent, the borrower will hire a qualified esti-
mator to certify, in writing, the fair market value
of the work as detailed in the job specifications.

(1) Who is not a City and County employee;
but

(2) Who is approved by the Chief Adminis-
trative Officer because he or she is qualified and
experienced in the area of residential rehabilita-
tion.

The estimator shall operate under the direc-
tion of the Director of the Real Estate Depart-
ment.

(d) No loan will be granted in an amount
exceeding 110 percent of the fair market value of
the recommended work as specified in the job
specifications as certified in writing by a quali-
fied estimator, or higher than the lowest bid
received, whichever is less, without the approval
of the Chief Administrative Officer.

(e) The Chief Administrative Officer shall,
semi-annually, direct a report to the Board of
Supervisors setting forth a list of the loans which

3825

Sec. 40.19. San Francisco -Administrative Code 3826

were in excess of 110 percent of fair market value
pursuant to the provisions of Subdivision (d)
giving the reasons for approval in each case.
(Added by Ord. 482-80, App. 10/17/80)

[The next page is 3835]

ARTICLE VII: TERMS OF LOANS

Sec. 40.20.

Sec. 40.21.

Sec. 40.22.

Sec. 40.23.

Sec. 40.24.

Sec. 40.25.

Sec. 40.26.
Sec. 40.27.
Sec. 40.28.

Maximum Repayment Period

for Loan; Initiation of Payments

after Rehabilitation.

Security for Loan.

Impound Account.

Transfer of Loans.

Interest Rates and Other Loan

Charges.

Tenant Moving Costs and Right

of First Refusal; Rent for

Reoccupied Units.

Open Housing.

Equal Employment Opportunity.

Enforcement of Loan Provisions.

SEC. 40.20. MAXIMUM REPAYMENT
PERIOD FOR LOAN; INITIATION OF
PAYMENTS AFTER REHABILITATION.

(a) The maximum repajmient period for a
HELP loan shall be 20 years or three-fourths of
the economic life of the property, whichever is
less.

(b) Subject to budgetary and fiscal limita-
tions, and approval of the Chief Administrative
Officer, payments on a HELP loan may not be
required to comnience prior to completion of the
improvements for which such loan is made; pro-
vided, that pajnnents shall begin no later than
six months after an initial disbursement from
proceeds of the loan. The monthly payment due
under the loan shall be adjusted to insure repay-
ment of the principal and interest due on the
loan within the time required by Paragraph (a)
of this Section. (Added by Ord. 482-80, App.
10/17/80)

SEC. 40.21. SECURITY FOR LOAN.

Unless provided otherwise in any bond reso-
lution issued pursuant to the provisions of this
Chapter, every HELP loan shall be secured by a

deed of trust naming the City and County as
beneficiary of the trust. (Added by Ord. 482-80,
App. 10/17/80)

SEC. 40.22. IMPOUND ACCOUNT.

If the Chief Administrative Officer deems it
desirable and necessary to effectuate the pur-
poses of the program that an impound account be
required to assure taxes, insurance, or a main-
tenance reserve, he or she may include such a
requirement in any HELP loan agreement. (Added
by Ord. 482-80, App. 10/17/80)

SEC. 40.23. TRANSFER OF LOAlNfS.

(a) The unpaid amount of a HELP loan
shall be due and payable upon sade or transfer of
the ownership of the property, except that assign-
ment of the unpaid amount of such a loan to a
purchaser or transferee may be permitted when
the Chief Administrative Officer determiines that
hardship conditions exist and the prospective
owner qualifies for a loan on the basis of current
loan eligibility standards.

(b) If the holder of a HELP loan is dissatis-
fied with the Chief Administrative Officer's re-
fusal to permit transfer of the unpaid amount of
the loan because of a finding that hardship
conditions do not exist, the holder of the loan
may request review of the Chief Administrative
Officer's determination by the Loan Committee.
If the Loan Committee recommends a finding
that hardship conditions exist, the Chief Admin-
istrative Officer shall either accept that recom-
mendation or give written reasons for the refusal
to accept it.

(1) When the owner of property subject to a
HELP loan is forced to sell the propert}/^ and the
property cannot be sold without a substantial
loss of equity unless the loan is transferable;

3835

Sec. 40.23.

San Francisco - Administrative Code

3836

(2) When the income of a prospective pur-
chaser of property subject to a HELP loan is at or
below income standards to be established by the
Chief Administrative Officer; or

(3) When the prospective purchaser is un-
able to obtain financing in the private sector
because of age, disability or sex; or

(4) When transfer of the loan is necessary to
prevent significant rent increases.

(d) The Chief Administrative Officer shall
develop standards which shall be applied in
making determinations required under this Sec-
tion. (Added by Ord. 482-80, App. 10/17/80)

SEC. 40.24. INTEREST RATES AND
OTHER LOAN CHARGES.

The interest rate and any other charges to
the borrower for a HELP loan shall be estab-
lished pursuant to the provisions of Sections 40.5
and 40.11, and may include:

(a) The interest charged the City and County
on funds borrowed to carry out the provisions of
this Chapter;

(b) An amount needed to provide for pos-
sible defaults on outstanding loans;

(d) An amount to cover the cost of servicing
loan accounts;

(e) An amount to cover the costs of issuing
bonds;

(f) An amount to cover the costs of the
administration of the loans including, but not
limited to, loan officer services, title report, and
credit report. (Added by Ord. 482-80, App. 10/17/
80)

SEC. 40.25. TENANT MOVING COSTS
AND RIGHT OF FIRST REFUSAL; RENT
FOR REOCCUPIED UNITS.

(a) Every loan application for the HELP
program shall report the current rents of each
unit in the building for which assistance is
sought.

(b) In the case of dwelling units which the
Superintendent of the Bureau of Building Inspec-
tion certifies as dwelling units which must be
vacated because of residential rehabilitation to
be performed on the structure where they are
located with assistance from the HELP program:

(1) The property owner is responsible for
paying the reasonable cost of moving expenses
only of each low and moderate income household
displaced from such a unit; maximum moving
expense shall not be in excess of $500;

(2) Any tenant who must vacate such a
dwelling unit shall have the right of first refusal
to occupy that unit when rehabilitation of the
property is completed;

(3) Notwithstanding any other provisions of
the San Francisco Rent Stabilization and Arbi-
tration Ordinance, or any rules or regulations
promulgated in accordance with that ordinance,
and notwithstanding the provisions of any suc-
cessor ordinance or law regulating rent increases
which is in effect at the time the HELP loan is
made, the rent charged to any tenant who next
occupies such a unit following rehabilitation may
not exceed the rent which could be charged a
reoccupying tenant under the terms of such
ordinance or law in effect at the time the HELP
loan is made (the prior rent adjusted in accor-
dance with Section 37.9(a)(ll) of Chapter 37 of
the San Francisco Administrative Code or com-
parable provisions of the ordinance in effect at
the time the HELP loan is made).

For purposes of Section 37.9(a)(ll) the reha-
bilitation cost which is permitted to be passed on
as a rent increase to any tenant who chooses to
occupy a dwelling unit after rehabilitation of the
property has been completed shall be amortized
over the original amortization period of the HELP
loan.

(4) The property owner shall give each ten-
ant living in such a unit written notice, 30 days
prior to the date the tenant must vacate, of the
right to have no more than $500 of the reason-
able cost of moving the household paid, if the
household qualifies as a low and moderate in-
come household, and of the right to first refusal
to reoccupy the unit at the prior rent adjusted in

3837

Housing Code Enforcement Loan Program - Terms of Loans

Sec. 40.28.

accordance with Section 37.9(a)(ll) of Chapter
37 of the San Francisco Administrative Code, or
successor provision, as modified in clause (3)
above. A copy of the notice specified in clause (3)
shall be forwarded to the Chief Administrative
Officer.

(d) The anticipated cost of moving house-
holds affected by residential rehabilitation may
be included in the property owner's loan.

(e) The determinations of qualification as a
low and moderate income household and of the
amount of moving expenses due a tenant shall be
made by the Central Relocation Service of the
Mayor's Office using the standard schedule for
such computation. (Added by Ord. 482-80, App.
10/17/80)

SEC. 40.26. OPEN HOUSING.

All HELP agreements shall provide that so
long as the loan or any portion of it is outstand-
ing the property shall be open, upon sale or
rental of all or any portion thereof, to all persons
regardless of race, sex, marital status, color,
religion, national origin or ancestry. (Added by
Ord. 482-80, App. 10/17/80)

SEC. 40.27. EQUAL EMPLOYMENT
OPPORTUNITY.

All HELP loan agreements shall provide that
all contracts and subcontracts let for residential
rehabilitation financed under this Chapter are to
be let without regard to the race, sex, marital
status, color, religion, national origin or ancestry
of the contractor or subcontractor. Further, all
HELP loan agreements shall provide that any
contractor or subcontractor engaged in residen-
tial rehabilitation financed under this Chapter
must agree to provide equal opportunity for
employment without regard to race, sex, marital
status, color, religion, national origin or ancestry.
(Added by Ord. 482-80, App. 10/17/80)

SEC. 40.28. ENFORCEMENT OF LOAN
PROVISIONS.

The provisions of Section 40.26 and the pro-
visions of Section 40,27 as they relate to enforce-
ment of nondiscrimination on the basis of race,
sex, marital status, color, religion, national ori-
gin or ancestry, are enforceable by the Human
Rights Commission. The enforcement powers,
responsibilities and procedures of the Human
Rights Commission set forth in Chapters 12A
and 12B of the San Francisco Administrative
Code shall be applicable to carry out the
Commission's responsibilities under this Chap-
ter. (Added by Ord. 482-80, App. 10/17/80)

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ARTICLE VIII: MISCELLANEOUS PROVISIONS

Sec. 40.29. Limitations on Conversions.
Sec. 40.30. Relocation Assistance.
Sec. 40.31. Private Cause of Action.
Sec. 40.32. Review.
Sec. 40.33. Construction and Effect of
Chapter.

Sec. 40.34. Severability.

SEC. 40.29. LIMITATIONS ON
CONVERSIONS.

(a) HELP loans are intended to be used only
for the purpose of maintaining eligible multi-
family buildings for their current use. No HELP
loan may be used for rehabilitation for the pur-
pose of conversion of a multi-family building, or
portion thereof, to a condominium; for conver-
sion to a tourist hotel unit, as defined in the
Residential Hotel Unit Conversion Demolition
and Change in Use Ordinance; or for conversion
to commercial use; nor may any owner cause any
such conversion while the loan is still outstand-
ing.

(b) No building, or portion thereof, may be
converted- to such condominium, tourist hotel
unit, or commercial use for a period of five years
following the recording of a HELP loan on the
building, nor for a period of five years following
the assumption of such a HELP loan within the
first five-year period, whether intentionally or
unintentionally, and whether by the original
borrower or a successor in interest. To assure
notice and enforceability of this requirement as
affects successors in interest, no HELP loan
shall be made without the recording of deed
restrictions as provided in this paragraph.

(d) No City and County agency may ap-
prove any building permit or subdivision map
which would permit violation of this Section.

(e) Every borrower, or successor obligor, of a
HELP loan shall annually file with the Bureau of
Building Inspection an affidavit swearing under
penalty of perjury that no conversion prohibited
by this Section has occurred during the preced-
ing year.

(f) Except as provided in Subdivision (b) of
this Section, nothing in this Section shall pre-
vent conversions of multi-family buildings as-
sisted under the progTam following repayment of
the entire balance due on the HELP loan. (Added
by Ord. 482-80, App. 10/17/80)

SEC. 40.30. RELOCATION ASSISTANCE.

(a) In addition to moving costs, a tenant
displaced because of rehabilitation financed pur-
suant to this Chapter of the dwelling unit or
building in which the tenant lives may be eligible
for relocation assistance under the City and
County's Special Rent Assistance Program under
the Central Relocation Service of the Mayor's
Office.

(b) If state or federal funds are available for
relocation assistance, such funds shall be pro-
vided to eligible recipients pursuant to State law.
If such funds are available, the Chief Adminis-
trative Officer shall notify all owners and ten-
ants of buildings rehabilitated with assistance of
financing issued pursuant to this Chapter of the
availability of various types of relocation ben-
efits, the eligibility requirements for relocation
benefits and the procedures for obtaining reloca-
tion benefits; and the terms and conditions un-
der which the relocation costs shall be reim-
bursed to the City and County by the owner.

(c) Current and continuing information on
the availability and cost of comparable housing
and comparable commercial properties and loca-
tions will be maintained and available to the
public at the Central Relocation Services Office.

(d) Information concerning federal and State
housing programs, disaster loan and other pro-
grams administered by the Small Business Ad-

3847

Sec. 40.30.

San Francisco - Administrative Code

3848

ministration, and other federal or State pro-
grams offering assistance to displaced persons,
will be available at the Central Relocation Ser-
vices Office.

(e) Persons who believe that they have been
discriminated against in the rehousing process
will be referred to the Human Rights Commis-
sion for either action or referral to the appropri-
ate law enforcement agencies.

(f) Central Relocation Services shall be re-
sponsible for administration of any relocation
benefits provided pursuant to this Section. (Added
by Ord. 482-80, App. 10/17/80)

SEC. 40.34. SEVERABILITY.

SEC. 40.31. PRIVATE CAUSE OF
ACTION.

Any tenant of any dwelling unit benefited by
any HELP loan whose rent may be increased,
who may be displaced, or who may otherwise be
injured by any violation of £iny term of the HELP
loan agreement shall be entitled to institute a
private action:

(a) To enjoin continued violation of the HELP
loan agreement; and

(b) To recover any actual damages suffered
as well as costs and attorneys fees. (Added by
Ord. 482-80, App. 10/17/80)

SEC. 40.32. REVIEW.

This ordinance shall be reviewed by the Board
of Supervisors within two years of the date on
which it takes effect. At such time the Board of
Supervisors shall conduct hearings regarding
the continuation, revision, or termination of the
program and as to whether this Chapter should
continue in effect, be amended, or be repealed.
(Added by Ord. 482-80, App. 10/17/80)

SEC. 40.33. CONSTRUCTION AND
EFFECT OF CHAPTER.

[The next page is 3859]

CHAPTER 41: RESIDENTIAL HOTEL UNIT CONVERSION .l\ND DEMOLITION

Sec. 41.1. Title.

Sec. 41.2. Purpose.

Sec. 41.3. Findings.

Sec. 41.4. Definitions.

Sec. 41.5. Applicability of this Chapter.

Sec. 41.6. Initial Status Determination.

Sec. 41.7. Statements of Exemption;

Applicability of this Chapter.
Sec. 41.8. Requirements for Nonprofit

Organizations.
Sec. 41.9. Records of Use.

Sec. 41.10. Annual Unit Usage Report.
Sec. 41.11. Administration.
Sec. 41.12. Permit to Convert.
Sec. 41.13. One-for-one Replacement.
Sec. 41.14. Mandatory Denial of Permit to

Convert.
Sec. 41.15. Approval and Issuance of

Permit to Convert.
Sec. 41.16. Appeal of Denial or Approval of

Permit to Convert.
Sec. 41.17. Rights of Permanent Residents.
Sec. 41.18. Demolition.
Sec. 41.19. Temporary Change of

Occupancy.
Sec. 41.20. Unlawful Conversion; Remedies;

Fines.
Sec. 41.21. Annual Review of Residential

Hotel Status.
Sec. 41.22. Construction.

SEC. 41.1. TITLE.

This Chapter shall be known as the Residen-
tial Hotel Unit Conversion and Demolition Ordi-
nance. (Added by Ord. 121-90, App. 4/12/90)

SEC. 41.2. PURPOSE.

It is the purpose of this ordinance to benefit
the general public by minimizing adverse impact
on the housing supply and on displaced low

income, elderly, and disabled persons resulting
from the loss of residential hotel units through
their conversion and demolition. This is to be
accomplished by establishing the status of resi-
dential hotel units, by regulating the demolition
and conversion of residential hotel units to other
uses, and by appropriate administrative and
judicial remedies. (Added by Ord. 121-90, App.
4/12/90)

SEC. 41.3. FINDINGS.

The Board of Supervisors finds that:

(a) There is a severe shortage of decent,
safe, sanitary and affordable rental housing in
the City and Countj^ of San Francisco and this
shortage affects most severely the elderly, the
disabled and low-income persons.

(b) The people of the City and County of
San Francisco, cognizant of the housing shortage
of San Francisco, on November 4, 1980, adopted
a declaration of policy to increase the city's
housing supply by 20,000 units.

(d) A study prepared by the Department of
City Planning estimated that there v/ere only
26,884 residential hotel units in the City in
December of 1979, a decrease of 6,098 such units
from 1975. Since enactment of this Chapter,
residential hotel units have continued to de-
crease, at a slower rate: in 1981, there were
20,466 residential hotel units as defined by this
Chapter; in 1988, there were 18,723 residential
hotel units, a decrease of 1,743 over a period of 7
years. The decrease is caused by vacation, con-
version or demolition of residential hotel units.
Continued vacation, conversion or demolition of
residential hotel units will aggravate the exist-
ing shortage of affordable, safe and sanitary
housing in the City and County of San Francisco.

3859

Sec. 41.3.

San Francisco - Administrative Code

3860

(e) As a result of the removal of residential
hotel units from the rental housing market, a
housing emergency exists within the City and
County of San Francisco for its elderly, disabled
and low-income households.

(f) Residential hotel units are endangered
housing resources and must be protected.

(g) The Board of Supervisors and the Mayor
of the City and County of San Francisco recog-
nized this housing emergency and enacted an
ordinance which established a moratorium on
the demolition or conversion of residential hotel
units to any other use. The moratorium ordi-
nance became effective on November 21, 1979.

(h) The conversion of residential hotel units
affects those persons who are least able to cope
with displacement in San Francisco's housing
market.

(i) It is in the public interest that conver-
sion of residential hotel units be regulated and
that remedies be provided where unlawful con-
version has occurred, in order to protect the
resident tenants and to conserve the limited
housing resources.

(j) The tourist industry is one of the major
industries of the City and County of San Fran-
cisco. Tourism is essential for the economic well
being of San Francisco. Therefore, it is in the
public interest that a certain number of moder-
ately priced tourist hotel units be maintained
especially during the annual tourist season be-
tween May 1st and September 30th.

(k) Tourist activity has increased steadily
in San Francisco since 1983. There are currently
approximately 23,000 tourist hotel units in the
City and over 3,000 additional such units will be
added by 1988 through new construction. How-
ever, there are presently only 18,723 residential
hotel units and this number is not increasing. In
addition, rents for residential hotel units have
risen an average of 23 percent annually since
1980, making such units less and less affordable
as a housing resource for the elderly, disabled
and low-income persons. Since the adoption of
this ordinance, hotel owners have begun to leave
residential units vacant during the non-tourist
season (October 1st — ^April 30th) in order to rent

these units to tourists at high daily rental rates
during the tourist season (May 1st — September
30th). This activity, which further reduces the
available supply of low and moderate income
housing in San Francisco, is not presently pro-
hibited under this Chapter. In order to assure
that residential hotel owners do not continue to
withhold these available residential units from
prospective permanent residents during the non-
tourist season, it is necessary to restrict the
tourist season rental of vacant residential hotel
units. Such a restriction will not interfere with
San Francisco's tourism, which remains essen-
tial to the economic well-being of the City.

(1) Since enactment of this Chapter, it has
become apparent that portions of this Chapter
were difficult and extremely costly to interpret
and enforce, resulting in an inability to fulfill the
essential intent of this Chapter and to prevent
illegal conversions.

(m) Since enactment of this Chapter, resi-
dential units have been converted to tourist
units and the hotel operators have paid the 40
percent in-lieu fee to the City. This amount, 40
percent of the cost of construction of comparable
units plus site acquisition cost, has not been
adequate to provide replacement units. Federal,
state and local funds were incorrectly assumed
at that time to be available and sufficient to
make up the shortfall between the 40 percent
in-lieu fee and actual replacement costs. For
example, in 1979 the federal government was
spending 32 billion dollars on housing and is
spending only 7 billion dollars in 1989.

(n) Certain uses provide both living accom-
modation and services, such as health care, per-
sonal care and counseling, to residents of the
City. Examples of such uses are hospital, skilled
nursing facility, AIDS hospice, intermediate care
facility, asylum, sanitarium, orphanage, prison,
convent, rectory, residential care facility for the
elderly, and community care facility. Such facili-
ties are often operated in building owned or
leased by non-profit organizations and provide
needed services to the City's residents. To subject
such facilities to the provisions of this Chapter
may deter future development of such facilities.

3861

Residential Hotel Unit Conversion and Demolition

Sec. 41.4.

It is desirable that such facihties exist and the
City should encourage construction and opera-
tion of such facilities.

(o) In addition, a form of housing facilities
called "transitional housing" provides housing
and supportive services to homeless persons and
families and is intended to facilitate the move-
ment of homeless individuals and families to
independent living or longer term supportive
residences in a reasonable amount of time. Tran-
sitional housing has individual living quarters
with physical characteristics often similar to a
residential hotel (i.e. accommodations which pro-
vide privac};^ to residents) and provides a source
of interim housing for homeless individuals and
families seeking to live independently.

(p) The City's public, quasi-public and pri-
vate social agencies serving the elderly and needy
persons often find it difficult to immediately
locate suitable housing units for such persons
returning to independent living after hospital-
ization or upon leaving skilled-nursing or inter-
mediate care facilities within a short time after
their discharge from a health facility. Such per-
sons often will require minimum supervision
and other interim social service support. The
provision of a stable number of housing units for
such emergency needs until permanent housing
can be secured and supportive services arranged
are necessary and desirable for the City. Emer-
gency housing will have physical characteristics
similar to "transitional housing" and is often
intended to be occupied for a period of less than
one month.

(q) The City also wishes to provide positive
incentive to encourage residential hotel owners
and operators to comply with the terms of this
Chapter. Hotel owners have expressed a need to
rent certain residential units on a short term
basis during the winter months. In an effort to
address this need and to encourage compliance
with this Chapter, the City wishes to provide an
opportunity to hotel owners who have complied
with the terms of this Chapter to rent a limited
number of residential units to tourists during
the winter months. (Added by Ord. 121-90, App.
4/12/90)

SEC. 41.4. DEFINITIONS.

(a) Certificate of Use. Following the ini-
tial unit usage and annual unit usage determi-
nation pursuant to the provisions of Sections
41.6 and 41.10 below, every hotel shall be issued
a certificate of use specifying the number of
residential and tourist units herein.

(b) Comparable Unit. A unit which is simi-
lar in size, services, rental amount and facilities,
and which is located within the existing neigh-
borhood or within a neighborhood with similar
physical and socioeconomic conditions.

(c) Conversion. The change or attempted
change of the use of a residential unit as defined
in subsection (q) below to a tourist use, or the
elimination of a residential unit or the voluntary
demolition of a residential hotel. However, a
change in the use of a residential hotel unit into
a non-commercial use which serves only the
needs of the permanent residents, such as
resident's lounge, storeroom or common area,
shall not constitute a conversion within the mean-
ing of this Chapter.

(d) Disabled Person. A recipient of disabil-
ity benefits.

(e) Elderly Person. A person 62 years of
age or older.

(f) Emergency Housing. A project which
provides housing and supportive services to eld-
erly or low-income persons upon leaving a health
facility and which has its primary purpose of
facilitating the return of such individuals to
independent living. The emergency housing shall
provide services and living quarters pursuant to
Section 41.13 herein and may be provided as
part of a "transitional housing" project.

(g) Hotel. Any building containing six or
more guest rooms intended or designed to be
used, or which are used, rented or hired out to be
occupied or which are occupied for sleeping pur-
poses and dwelling purposes by guests, whether
rent is paid in money, goods, or services. It
includes motels, as defined in Chapter XII, Part
II of the San Francisco Municipal Code (Housing
Code), but does not include any jail, health
facilities as defined by Section 1250 of the Health
and Safety Code, asylum, sanitarium, orphan-

Sec. 41.4.

San Francisco - Administrative Code

3862

age, prison convent, rectory, residential care fa-
cility for the elderly as defined in Section 1569.2
of the Health and Safety Code, residential facili-
ties as defined in Section 1502 of the Health and
Safety Code or other institution in which human
beings are housed or detained under legal re-
straint, or any private club and nonprofit orga-
nization in existence on September 23, 1979;
provided, however, that nonprofit organizations
which operated a residential hotel on September
23, 1979 shall comply with the provisions of
Section 41.8 herein.

(h) Interested Party. A permanent resi-
dent of a hotel, or his or her authorized repre-
sentative, or a former tenant of a hotel who
vacated a residential unit within the past 90
days preceding the filing of complaint or court
proceeding to enforce the provisions of this Chap-
ter. Interested party shall also mean any non-
profit organization, as defined in Section 41.4(k),
which has the preservation or improvement of
housing as a stated purpose in its articles of
incorporation and/or bylaws.

(i) Low-Income Household. A household
whose income does not exceed 60 percent of the
median income for the San Francisco Standard
Metropolitan Statistical Area as published by
the United States Department of Housing and
Urban Development and Housing and Commu-
nity Development Act of 1974.

(j) Low-Income Housing. Residential units
whose rent may not exceed 30 percent of the
gross monthly income of a low-income household
as defined in subsection (i) above.

(k) Nonprofit Organization. An entity ex-
empt from taxation pursuant to Title 26, Section
501 of the United States Code.

(1) Operator. An operator includes the les-
see or any person or legal entity whether or not
the owner, who is responsible for the day-to-day
operation of a residential hotel and to whom a
hotel license is issued for a residential hotel.

(m) Owner. Owner includes any person or
legal entity holding any ownership interest in a
residential hotel.

(n) Permanent Resident. A person who
occupies a guest room for at least 32 consecutive
days.

(o) Posting or Post. Where posting is re-
quired by this Chapter, material shall be posted
in a conspicuous location at the front desk in the
lobby of the hotel, or if there is no lobby, in the
public entranceway. No material posted may be
removed by any person except as otherwise pro-
vided in this Chapter.

(p) Residential Hotel. Any building or
structure which contains a residential unit as
defined in (q) below unless exempted pursuant to
the provisions of Sections 41.5 or 41.7 below.

(q) Residential Unit. Any guest room as
defined in Section 203.7 of Chapter XH, Part U of
the San Francisco Municipal Code (Housing Code)
which had been occupied by a permanent resi-
dent on September 23, 1979. Any guest room
constructed subsequent to September 23, 1979
or not occupied by a permanent resident on
September 23, 1979 shall not be subject to the
provisions of this Chapter; provided however, if
designated as a residential unit pursuant to
Section 41.6 of this Chapter or constructed as a
replacement unit, such residential units shall be
subject to the provisions of this Chapter.

(r) Tourist Hotel. Any building containing
six or more guest rooms intended or designated
to be used for commercial tourist use by provid-
ing accommodation to transient guests on a
nightly basis or longer. A tourist hotel shall be
considered a commercial use pursuant to City
Planning Code Section 216(b) and shall not be
defined as group housing permitted in a residen-
tial area under City Planning Code Section 209.2.

(s) Tourist Unit. A guest room which was
not occupied on September 23, 1979, by a perma-
nent resident or is certified as tourist unit pur-
suant to Sections 41.6, 41.7 or 41.8 below. Des-
ignation as a tourist unit under this Chapter
shall not supersede any limitations on use pur-
suant to the Planning Code.

(t) Transitional Housing. A project which
provides housing and supportive services to home-
less persons and families or low-income house-
holds at risk of becoming homeless which has as

3863

Residential Hotel Unit Conversion and Demolition

Sec. 41.6.

its purpose facilitating the movement of home-
less individuals or at-risk low-income house-
holds to independent living within a reasonable
amount of time. The transitional housing shall
provide ser\dces and living quarters as approved
by the Planning Commission that are similar to
the residential unit being replaced pursuant to
Section 41.13 herein and shall comply with all
relevant provisions of City ordinances and regu-
lations. (Added by Ord. 121-90, App. 4/12/90)

SEC. 41.5. APPLICABILITY OF THIS
CHAPTER.

The provisions of this Chapter shall not ap-
ply to:

(a) The change in use of a residential unit
where the unit has been found to be unfit for
human habitation prior to November 23, 1979
and ordered to be vacated by the Department of
Public Health; or

(b) A hotel wherein 95 percent of the guest
rooms were tourist units on September 23, 1979;
or

(d) A hotel in which 95 percent of the total
number of guest rooms rented for more than
$1,000 per month on September 23, 1979; or

(e) A building which was unlawfully con-
verted to a rooming house or hotel in violation of
the provisions of the City Planning Code; or

(D A building which meets the require-
ments of Section 41.7(c) below for a claim of
exemption for partially-completed conversions;
or

(g) A building which meets the require-
ments of Section 41.7(b) below for a claim of
exemption for low-income housing; or

(h) A building which is lawfully approved
by the City after September 23, 1979, and is not
a replacement unit pursuant to Section 41.13
herein, so long as it is operated by a public entity
or a nonprofit organization as a jail, health
facilities as defined by Section 1250 of the Health
and Safety Code, asylum, sanitarium, orphan-
age, prison, convent, rectory, residential care
facility for the elderly as defined in Section

1569.2 of the Health and Safety Code, residen-
tial facilities as defined in Section 1502 of Health
and Safety Code, or other institution in which
human beings are housed or detained under
legal restraint. (Added by Ord. 121-90, App.
4/12/90)

SEC. 41.6. INITIAL STATUS
DETERMINATION.

(a) Filing of Initial Status Determina-
tion; Time Limit. Within 30 calendar days of
the mailing date of the summary of the ordi-
nance and the prescribed repoi'ting forms, the
ow ner or operator of each hotel shall file either a
statement of exemption, a claim of exemption
based on low-income housing, a claim of exemp-
tion based on partially completed conversion, or
an initial unit usage report as specified below. All
filing shall be accorapanied by supporting evi-
dence. However, upon application by an owner or
operator and upon showing a good cause there-
for, the Director of the Department of Building
Inspection may grant an extension of time not to
exceed 30 days for filing. Owner or operator shall
post a notice on the day of filing that a copy of the
initial status determination document filed with
the Director of the Department of Building In-
spection is available for inspection between the
hours of 9:00 a.m. and 5:00 p.m. Monday through
Friday.

(b) Filing of Initial Unit Usage Report.

All hotels not covered by the exemptions in
Sections 41.5, 41.7 or 41.8 must file an initial
unit usage report containing the following:

(1) The number of residential and tourist
units in the hotel as of September 23, 1979;

(2) The designeition by room number and
location of the residential units and tourist units
as of seven calendar days prior to the date of
filing the report;

(3) The total number of residential and tour-
ist rooms in the hotel as of seven calendar days
prior to date of filing the report.

(c) Insufficient Filing. If the Director of
the Department of Building Inspection or his
designee determines that additional infbrmation
is needed to make a determination, the Director

Sec. 41.6.

San Francisco - Administrative Code

3864

shall request the additional information in writ-
ing. The owner or operator shall furnish the
requested information within 15 calendar days
upon receipt of the written request. Owner or
operator shall immediately post a notice that a
copy of the requested information is available for
inspection between the hours of 9:00 a.m. and
5:00 p.m. Monday through Friday at the Depart-
ment of Building Inspection. If the requested
information is not furnished, all the guest rooms
not supported by evidence shall be deemed to be
residential units.

(d) Certification of Units. The Director of
the Department of Building Inspection shall re-
view the information and accompanying support-
ing data. A certified copy of hotel tax returns for
the calendar year 1979 may be used to establish
the number of tourist units and the Director of
the Department of Building Inspection or the
Director's designee may personally inspect units
to establish the number of tourist units. If, in the
opinion of the Director of the Department of
Building Inspection, the initial unit usage report
is supported by adequate supporting evidence,
the Director shall certify the number of residen-
tial and tourist units within 90 calendar days of
its submission. The owner or operator shall have
the burden of proving the number of tourist units
claimed by a preponderance of evidence.

Notwithstanding any other provisions in this
Chapter, if an owner or operator took possession
of the hotel operation after September 23, 1979
and before June 15, 1981, and if the owner or
operator can demonstrate that good cause exists
why he/she cannot obtain supporting evidence
from the previous owner or operator to file the
initial report, the owner or operator shall base
his/her filing on information available to him/her
two weeks after he/she took possession of the
hotel; any units which are vacant on that date
shall be allocated equally between tourist and
residential uses; provided that a permanent resi-
dent may rebut this presumption by clear and
convincing evidence.

After the Director of the Department of Build-
ing Inspection certifies the number of residential
and tourist units, the Director shall issue a

certificate of use. The Certificate of Use shall be
posted permanently in the lobby or entranceway
of the hotel.

(e) Failure to File Statement of Exemp-
tion, Claim of Exemption or Initial Unit
Usage Report. If no initial unit usage report, or
statement of exemption, or a claim of exemption
based on partially completed conversion, or a
claim of exemption based on low-income housing
for all of the guest rooms, is filed for a hotel
within the time set forth in Section 41.6(a), the
Director of Department of Building Inspection
shall mail a notice to the owner or operator of
record by registered or certified mail stating that
all the rooms in the hotel shall be deemed
residential units unless the owner or operator
files unit usage report within 10 calendar days of
the mailing date of said notice and that a late
filing fee of $50 will be assessed in addition to the
fee set forth in Section 41.11 of this Chapter. If
the owner or operator fails to submit a unit
usage report within 10 calendar days after noti-
fication by the Department of Building Inspec-
tion, a certificate of use for residential units only
shall be issued.

(f) Appeal of Initial Determination. An

owner or operator may appeal the initial unit
status determination by the Director of the De-
partment of Building Inspection provided that
there was no challenge pursuant to the provi-
sions of subsection (g) below, and further pro-
vided that an appeal is filed within 10 calendar
days of the mailing of the certification. If an
appeal is filed, a copy of the notice of appeal shall
be posted by the owner or operator and a hearing
pursuant to the provisions of Section 41.8(b)
shall be scheduled.

(g) Challenge; Standing; Statute of Limi-
tation. Challenges to the information contained
in the initial status determination report filed by
the owner or operator may be filed by an inter-
ested party in writing provided that it is submit-
ted within 15 calendar days from the date the
report to the Department of Building Inspection
is filed. Upon receipt of a challenge, a hearing
shall be held by the Director of the Department
of Building Inspection or his designee pursuant

3865

Residential Hotel Unit Conversion and Demolition

Sec. 41.7.

to the provisions of Section 41.11(b). The owner
or operator shall have the burden of proving by a
preponderance of evidence that the information
filed is correct.

(h) Reporting Forms for Initial Unit Us-
age Report. Compliance by any party or by the
City of San Francisco with notice, filing, chal-
lenge, designation of unit and certification re-
quirements of Ordinance 330-81 regarding the
initial status of units shall satisfy similar require-
ments set forth in this Chapter and all such
notices, filings, challenges, designations or cer-
tificates shall have the same force and effect as if
made pursuant to this subsection. (Added by
Ord. 121-90, App. 4/12/90; amended by Ord.
134-01, File No. 001926, App. 7/6/2001)

SEC. 41.7. STATEMENTS OF
EXEMPTION; APPLICABILITY OF THIS
CHAPTER.

(a) Statement of Exemption Based on
Inapplicability of This Chapter. Any hotel
claiming that this Chapter does not apply, under
the provisions of Sections 41.5(a) through 41.5(d),
shall file a statement of exemption specifying the
basis for the exemption. Any hotel claiming ex-
emption under the provisions of Sections 41.5(b)
through 41.5(d) shall also state the total number
of guest rooms and the number of residential
hotel units with monthly rent over $1,000 per
month.

(b) Claim of Exemption Based on Low-
Income Housing. To qualify for a claim of
exemption based on low-income housing, the
units to be rehabilitated meet the following re-
quirements;

(1) A claim for this exemption has been filed
and the requisite fees paid to the Department of
Building Inspection no later than 60 calendar
days after the effective date of this ordinance;

(2) With the exception of ground floor com-
mercial space, the entire building must be com-
pletely occupied as low-income housing;

(3) The Director of the Department of Build-
ing Inspection finds that the proposed elimina-
tion of a unit is necessary to comply with Build-
ing Code and Housing Code requirements; and

(4) Alternate guest rooms are made avail-
able within the building to the displaced perma-
nent residents; or

(5) In those circumstances where it is nec-
essary to relocate a permanent resident off site,
the permanent resident shall receive the actual
moving expenses and the difference between the
rent at the time of relocation and the rent of the
temporary housing during the period of rehabili-
tation.

(6) The owner or operator and successors in
interest shall continue to maintain all units in
the rehabilitated hotel as low-income housing for
25 years. A deed restriction on such use shall be
submitted to the City Attorney's Office for ap-
proval. An approved copy of the deed restriction
shall be forwarded to the Director of the Depart-
ment of Building Inspection ands the original
shall be filed with the Recorder by the owner or
operator.

(c) Claim of Exemption Based on Par-
tially Completed Conversion. A claim of ex-
emption based on partially completed conversion
shall not be approved until and unless owner or
operator shows that all of the following require-
ments are met:

(1) An application for partially completed
conversion was filed no later than 60 calendar
days after the effective date of this ordinance;

(2) The owner or operator has coiTimenced
work on extensive Capital Improvements and
Rehabilitation Work prior to November 23, 1979,
as defined in Section 37.2 of the San Francisco
Administrative Code (the San Francisco Rent
Stabilization and Arbitration Ordinance) and
has completed such work on at least 35 percent
of the units intended to be converted or has
expended 40 percent of the total sum budgeted
for said work;

(3) The owner or operator or previous owner
or operator shall have clearly demonstrated his/
her intention to convert all of the residential
units in the subject building to tourist units as of
November 23, 1979. Satisfactory evidence of in-
tention to convert may be demonstrated by the
following factors, including but not limited to:

(A) Whether an architect has been engaged
to prepare plans and specifications; or

Sec. 41.7.

San Francisco - Administrative Code

3866

(B) Whether apphcations for construction
work have been received; or

(D) Whether a building permit has been
issued.

(4) Each permanent resident displaced by
the conversion is offered relocation assistance as
set forth in Section 41.17(b) below; and

(5) For each vacant residential unit con-
verted, but not occupied by a permanent resi-
dent, a sum of $250 per unit not to exceed a total
of $10,000 shall be deposited in the San Fran-
cisco Residential Hotel Preservation Account of
the Repair and Demolition Fund established
pursuant to Section 203.1 of the San Francisco
Building Code (being Chapter 1, Article 2, Part II
of the San Francisco Municipal Code) to be used
exclusively for the repair, purchase and rehabili-
tation of residential hotel units by agencies of
the City and County of San Francisco and to be
administered by the Department of Public Works.

(d) Consistent with Planning Code Section
183, any unit deemed to be a tourist unit which
has remained continuously vacant for three years
following the zoning change in a zoning district
not allowing tourist hotels shall lose its noncon-
forming status, and may be opened only for
residential hotel or group housing uses. (Added
by Ord. 121-90, App. 4/12/90; amended by Ord.
134-01, File No. 001926, App. 7/6/2001)

SEC. 41.8. REQUIREMENTS FOR
NONPROFIT ORGANIZATIONS.

(a) Initial Unit Usage Report. Within 90
days of the adoption of this amended Chapter,
the Department of Building Inspection shall no-
tify all nonprofit organizations operating hotels
that the nonprofit organization must comply
with the Initial Status Determination provisions
of Section 41.6 herein.

(b) Annual Unit Usage Report. All non-
profit organizations operating hotels with resi-
dential units shall comply with the provisions of
Section 41.10 herein in the event that the status

of the units in the hotel changes from the desig-
nation contained in the Initial Unit Usage Re-
port.

(c) One-for-One Replacement. If a non-
profit organization seeks to demolish residential
units or remove residential units from housing
use, or sells or otherwise transfers the building
containing residential use, it shall comply with
the provisions of Section 41.13 of this Chapter.

(d) Applicability of this Chapter. This
chapter shall not apply to a hotel which has a
certificate of use for all residential units but
contained no permanent residents on September
23, 1979, provided that the hotel is owned, leased
or operated by a nonprofit organization at the
time this exemption is sought. The owner, opera-
tor or lessee of such a hotel must file with the
Director of the Department of Building Inspec-
tion evidence to support such exemption. If the
exemption is approved, the Director shall issue a
certificate of use designating all the hotel's units
as tourist units; provided, however, that the
certificate shall not be issued until the hotel
owner, operator or lessee has paid any penalties
imposed under Section 41.6(e) or Section 41.10(f)
or (g), or released any liens imposed under Sec-
tion 41.20(d). (Added by Ord. 121-90, App. 4/12/
90; amended by Ord. 134-01, File No. 001926,
App. 7/6/2001)

SEC. 41.9. RECORDS OF USE.

(a) Daily Log. Each residential hotel shall
maintain a daily log containing the status of
each room, whether it is occupied or vacant,
whether it is used as a residential unit or tourist
unit, the name under which each adult occupant
is registered, and the amount of rent charged.
Each hotel shall also provide receipts to each
adult occupant, and maintain copies of the re-
ceipts, showing: the room number; the name of
each adult occupant; the rental amount and
period paid for; and any associated charges im-
posed and paid, including but not limited to
security deposits and any tax. The daily log and
copies of rent receipts shall be available for
inspection pursuant to the provision of Section
41.11(c) of this Chapter upon demand by the
Director of the Department of Building Inspec-

3867

Residential Hotel Unit Conversion and Demolition

Sec. 41.10.

tion or the Director's designee or the City
Attorney's Office between the hours of 9 a.m. and
5 p.m., Monday through Friday unless the Direc-
tor of the Department of Building Inspection or
the City Attorney's Office reasonably believe
that further enforcement efforts are necessary
for specified residential hotels, in which case the
Department of Building Inspection or the City
Attorney's Office shall notify the hotel owner or
operator that the daily logs and copies of rent
receipts shall be available for inspection between
the hours of 9 a.m. and 7 p.m. Each hotel shall
maintain the daily logs and copies of rent re-
ceipts for a period of no less than 24 months.

In addition to the investigative powers and
enforcement mechanisms prescribed in this Chap-
ter, the City Attorney's Office shall have the
authority to take further investigative action
and bring additional enforcement proceedings
including the immediate California Civil Code
Section 1940.1.

(b) Weekly Report. Following the initial
determination, an owner or operator of residen-
tial units shall post on each Monday before 12
noon the following information:

( 1 ) The number of tourist units to which the
owner or operator is currently entitled and the
date the certificate of use was last issued;

(2) The number of guest rooms which were
used as tourist units each day of the preceding
week. Evidence of compliance with requirements
imposed hereunder shall be preserved by the
owner or operator for a period of not less than
two years £ifter each posting is required to be
made. The owner or operator shall permit the
Director of the Department of Building Inspec-
tion or his designee to inspect the hotel records
and other supporting evidence to determine the
accuracy of the information posted. (Added by
Ord. 121-90, App. 4/12/90; amended by Ord.
134-01, File No. 001926, App. 7/6/2001; Ord.
195-05, File No. 051031, App. 7/29/2005)

SEC. 41.10.
REPORT.

ANNUAL UNIT USAGE

(a) Filing. On November 1st of each year
every hotel owner or operator subject to this
Chapter shall file with the Department of Build-
ing Inspection an /yinual Unit Usage Report
containing the following information:

(1) The total number of units in the hotel as
of October 15th of the year of filing;

(2) The number of residential and tourist
units as of October 15th of the year of filing;

(3) The number of vacant residential units
as of October 15th of the year of filing; if more
than 50 percent of the units are vacant, explain
why;

(4) The average rent for the residential ho-
tel units as of October 15th of the year of filing;

(5) The number of residential units rented
by week or month as of October 15th of the year
of filing; and

(6) The designation by room nuraber and
location of the residential units and tourist units
as of October 15th of the year of filing. Owner or
operator shall maintain such designated units as
tourist or residential units for the following year
unless owner or operator notifies in writing the
Department of Building Inspection of a redesig-
nation of units; owner or operator maj'^ redesig-
nate units throughout the year provided they
notify the Department of Building Inspection in
writing by the next business day follov/ing such
redesignation and maintain the proper number
of residential and tourist units at all times. The
purpose of this provision is to simplify enforce-
ment efforts while providing owner or operator
with reasonable and sufficient flexibility in des-
ignation and renting of rooms;

(7) The nature of services provided to the
permanent residents and whether there has been
an increase or decrease in the services so pro-
vided;

(8) A copy of the Daily Log, showing the
number of units which are residential, tourist or
vacant on October 1st, February 1st, May 1st
and August 1st of the year of filing.

Sec. 41.10.

San Francisco - Administrative Code

3868

(b) Notice of Annual Unit Usage Re-
port. On the day of filing, the owner or operator
shall post a notice that a copy of the Annual Unit
Usage Report submitted to the Department of
Building Inspection is available for inspection
between the hours of 9:00 a.m. and 5:00 p.m.
Monday through Friday, which notice shall re-
main posted for 30 days.

(c) Extension of Time for Filing. Upon
application by an owner or operator and upon
showing good cause therefor, the Director of the
Department of Building Inspection may grant
one extension of time not to exceed 30 days for
said filing.

(d) Certificate of Annual Unit Usage Re-
port. After receipt of a completed Annual Unit
Usage Report, the Department of Building In-
spection shall issue a certified acknowledgment
of receipt.

(e) Renewal of Hotel License and Issu-
ance of New Certificate of Use. As of the

effective date of this Chapter, no hotel license
may be issued to any owner or operator of a hotel
unless the owner or operator presents with his/
her license application a certified acknowledg-
ment of receipt from the Department of Building
Inspection of the Annual Unit Usage Report for
the upcoming year.

(f) Insufficient Filing; Penalties. The Di-
rector of the Department of Building Inspection
authorized to assess a penalty as set forth below
for insufficient filing, with interest on the pen-
alty accruing at the rate of one and one-half
percent per full month, compounded monthly
from the date the penalty is due as stated in the
Director's written notification below.

If the Director or the Director's designee
determines that additional information is needed
to make a determination, he shall send both the
owner and operator a written request to furnish
such information within 15 calendar days of the
mailing of the written request. The letter shall
state that if the requested information is not
furnished in the time required, the residential
and tourist units shall be presumed to be un-
changed from the previous year and that the
Director shall impose a $500 penalty for failure

to furnish the additional information within the
15-day period. If the Director does not timely
receive the information, the Director shall notify
both the owner and operator, by mail, that the
Director is imposing a $500 penalty which must
be paid within 30 days of the mailing of the
notification, and that interest on the penalty
shall accrue from the expiration of the 30 days at
the rate of one and one-half percent per full
month, compounded monthly. The written noti-
fication shall state that if the penalty is not paid,
a lien to secure the amount of the penalty, plus
the accrued interest, will be recorded against the
real property pursuant to the provisions of Sec-
tion 41.20(d) of this Chapter.

(g) Failure to File Annual Unit Usage
Report; Penalties. The Director of the Depart-
ment of Building Inspection is authorized to
assess penalties as set forth below for failure to
file an Annual Unit Usage Report, with interest
on penalties accruing at the rate of one and
one-half percent per full month, compounded
monthly from the date the penalty is due as
stated in the Director's notification below.

If the owner or operator fails to file an
Annual Unit Usage Report, the Director or the
Director's designee shall notify the owner and
operator by registered or certified mail and shall
post a notice informing the owner and operator
that unless submission of the Annual Unit Usage
Report and application for renewal of the hotel
license is made within 15 calendar days of the
mailing of the letter, the residential and tourist
units shall be presumed to be unchanged from
the previous year, and the Director shall impose
a penalty of $300 per month of each month the
annual report is not filed. If the Director does not
receive the report the Director shall notify both
the owner and operator, by mail that the Direc-
tor is imposing the appropriate penalty, as pro-
rated, which must be paid within 30 days of the
mailing of the notification and that interest on
the penalty shall accrue from the expiration of
the 30 days at the rate of one and one-half
percent per full month, compounded monthly.
The written notification shall state that if the
penalty is not paid, a lien to secure the amount of
the penalty, plus the accrued interest, will be

3869

Residential Hotel Unit Conversion and Demolition

Sec. 41.11.

recorded against the real property pursuant to
the provisions of Section 41.20(d) of this Chapter,
(h) Appeal of Annual Usage Determina-
tion. An owner or operator may appeal the
annual unit usage determination by the Director
of the Department of Building Inspection pro-
vided that there was no challenge pursuant to
the provisions of subsection (i) below, and further
provided that an appeal is filed within 20 calen-
dar days from the date of annual unit usage
determination. If an appeal is filed, a copy of the
notice of appeal shall be posted by the owner or
operator and a hearing pursuant to the provi-
sions of Section 41.11(b) shall be scheduled.

(i) Challenge; Standing; Statute of Limi-
tation. Any interested party may file a challenge
to the information contained in the annual unit
usage report filed by the owner or operator
provided that such a challenge is in writing and
is submitted within 30 calendar days from the
date the report to the Department of Building
Inspection is filed. Upon receipt of a challenge, a
hearing pursuant to the provisions of Section
41.11(b) shall be scheduled. The owner or opera-
tor shall have the burden of proving by a prepon-
derance of evidence that the information filed is
correct. (Added by Ord. 121-90, App. 4/12/90;
amended by Ord. 134-01, File No. 001926, App.
7/6/2001)

SEC. 41.11. ADMINISTRATION.

(a) Fees. The owner or operator shall pay
the following filing fees to the Department of
Building Inspection to cover its costs of investi-
gating and reporting on eligibility. See Section
333.2, Hotel Conversion Fee Schedule, Part II,
Chapter 1 of the San Francisco Municipal Code
(Building Code) for the applicable fees. The party
that brings an unsuccessful challenge to a report
pursuant to this Article shall be liable for the
change in Section 333.2, Hotel Conversion Fee
Schedule. Unsuccessful Challenge, Part II, Chap-
ter 1 of the San Francisco Municipal Code (Build-
ing Code). Fees shall be waived for an individual
who files an affidavit under penalty of perjury
stating that he or she is an indigent person who
cannot pay the filing fee without using money
needed for the necessities of life.

SEE SAN FRANCISCO MUNICIPAL. CODE

(BUILDING CODE) SECTION 333.2

HOTEL CONVERSION FEE SCHEDULE

(b) Hearing.

(1) Notice of Hearing. Whenever a hear-
ing is required or requested in this Chapter, the
Director of the Depairtment of Building Inspec-
tion shall, within 45 calendar days, notify the
owner or operator of the date, time, place and
nature of the hearing by registered or certified
mail. The Director of the Department of Building
Inspection shall appoint a hearing officer. Notice
of such a hearing shall be posted by the Depart-
ment of Building Inspection. The owner or opera-
tor shall state under oath at the hearing that the
notice remained posted for at least 10 calendar
days prior to the hearing. Said notice shall state
that all permanent residents residing in the
hotel may appear and testify at the public hear-
ing, provided that the Department of Building
Inspection is notified of such an intent 72 hours
prior to the hearing date.

(2) Pre-hearing Submission. No less than
three working days prior to any hearing, parties
to the hearing shall submit written information
to the Department of Building Inspection includ-
ing, but not limited to, the following: the request
or complaint, the statement of issues to be deter-
mined by the Hearing Officer; and a statement of
the evidence upon which the request or com-
plaint is based.

(3) Hearing Procedure. If more than one
hearing for the same hotel is required, the Direc-
tor of the Department of Building Inspection
shall consolidate all of the appeals and chal-
lenges into one hearing; however, if a civil action
has been filed pursuant to the provisions of
Section 41.20(e) of the Chapter, all hearings on
administrative complaints of unlawful conver-
sions involving the same hotel shall be abated
until such time as final judgnient has been
entered in the civil action; an interested party
may file a complaint in intervention. The hear-
ing shall be tape recorded. Any party to the
appeal may, at his/bier own expense, cause the
hearing to be recorded by a certified court re-
porter. The hearing officer is empowered to issue

Sec. 41.11.

San Francisco - Administrative Code

3870

subpoenas upon application of the parties seven
calendar days prior to the date of the hearing.
During the hearing, evidence and testimony may
be presented to the hearing officer. Parties to the
hearing may be represented by counsel and have
the right to cross-examine witnesses. All testi-
mony shall be given under oath. Written decision
and findings shall be rendered by the hearing
officer within twenty working days of the hear-
ing. Copies of the findings and decision shall be
served upon the parties to the hearing by regis-
tered or certified mail. A notice that a copy of the
findings and decisions is available for inspection
between the hours of 9:00 a.m. and 5:00 p.m.
Monday through Friday shall be posted by the
owner or operator.

(4) Administrative Review. Unless other-
wise expressly provided in this Chapter, any
decision of the hearing officer shall be final
unless a valid written appeal is filed with the
Board of Permit Appeals within 15 days follow-
ing the date of the hearing officer's written
determination. Such an appeal may be taken by
any interested party as defined by Section 41.4(g)
herein.

(c) Inspection. The Director of the Depart-
ment of Building Inspection shall conduct, from
time to time, on-site inspections of the daily logs,
other supporting documents and units listed as
vacant in the daily logs to determine if owner or
operator has complied with the provisions of this
Chapter. In addition, the Director of the Depart-
ment of Building Inspection or the Director's
designee shall conduct such an inspection as
soon as practicable upon the request of a current
or former occupant of the hotel. If upon such an
inspection, the Director or Director's designee
determines that an apparent violation of the
provisions of this Chapter has occurred, he/she
shall post a notice of apparent violation inform-
ing the permanent residents of the hotel thereof
or shall take action as set forth in Section 41.11(d)
and (e) below. This notice shall remain posted
until the Director of the Department of Building
Inspection, or the Director's designee, deter-
mines that the hotel is no longer in violation of
the provisions of this Chapter.

(d) Criminal Penalties for Violations.

Any person or entity wilfully failing to maintain
daily logs or provide and maintain receipts as
provided in Sections 41.9(a) and (b) of this Chap-
ter, or failing to post materials as provided in
Sections 41.6(a), (c) and (f), 41.9(b), 41.10(b), (g)
and (h), 41.11(b) (3), 41.12(b)(10) and 41.18(b)
and (c) of this Chapter or wilfully providing false
information in the daily logs shall be guilty of an
infraction for the first such violation or a misde-
meanor for any subsequent violation, and the
complaint charging such violation shall specify
whether the violation charged is a misdemeanor
or an infraction.

If charged as an infraction, the penalty upon
conviction therefor shall be not less than $100 or
more than $500.

If charged as a misdemeanor, the penalty
upon conviction therefor shall be a fine of not less
than $500 or more than $1,000 or imprisonment
in the county jail, not exceeding six months, or
both fine and imprisonment.

Every day such violation shall continue shall
be considered as a new offense.

For purposes of Sections 41.11(d) and (e),
violation shall include, but not limited to, inten-
tional disobedience, omission, failure or refusal
to comply with any requirement imposed by the
aforementioned Sections or with any notice or
order of the Director of the Department of Build-
ing Inspection or the Director of Public Works
regarding a violation of this Chapter.

(e) False Information Misdemeanor. It

shall be unlawful for an owner or operator to
wilfully provide false information to the Director
of the Department of Building Inspection or the
Director's designees. Any owner or operator who
files false information shall be guilty of a misde-
meanor. Conviction of a misdemeanor hereunder
shall be punishable by a fine of not more than
$500 or by imprisonment in the County Jail for a
period not to exceed six months, or by both.

(f) The Director of the Department of Build-
ing Inspection may impose a penalty of $250 per
violation for failure to maintain daily logs or for
failure to provide receipts to occupants as re-
quired under Section 41.9 above and for failure

3871

Residential Hotel Unit Conversion and Demolition

Sec. 41.12.

to post materials as required under Sections
41.6(a), (c) and (f), 41.9(b), 41.10(b), (g) and (h),
41.11(b) (3), 41.12(b)(10), and 41.18(b) and (c). In
order to impose such penalties, the Director shall
notify both the owner and operator by certified
mail that the Director is imposing the penalty or
penalties, which must be paid within 30 days of
the mailing of the notification. The written noti-
fication shall state that if the penalty is not paid,
a lien to secure the amount of the penalty will be
recorded against the real property pursuant to
the provisions of Section 41.20(d) of this Chapter,
(g) Costs of Enforcement. The proceeds
from the filing fees and civil fines assessed shall
be used exclusively to cover the costs of investi-
gation and enforcement of this ordinance by the
City and County of San Francisco. The Director
of the Department of Building Inspection shall
annually report these costs to the Board of Su-
pervisors and recommend adjustments thereof.

(h) Inspection of Records. The Depart-
ment of Building Inspection shall maintain a file
for each residential hotel which shall contain
copies of all applications, exemptions, permits,
reports and decisions filed pursuant to the pro-
visions of this Chapter. All documents main-
tained in said files, except for all tax returns and
documents specifically exempted from the Cali-
fornia Public Record Act, shall be made available
for public inspection and copying.

(i) Promulgation of Rules and Regula-
tions. The Director of the Department of Build-
ing Inspection shall propose rules and regula-
tions governing the appointment of an
administrative officer and the administration
and enforcement of this Chapter. After reason-
able notice and opportunity to submit written
comment are given, final rules and regulations
shall be promulgated. (Added by Ord. 121-90,
App. 4/12/90; amended by Ord. 134-01, File No.
001926, App. 7/6/2001)

SEC. 41.12. PERMIT TO CONVERT.

(a) Any owner or operator, or his/her autho-
rized agent, of a residential hotel may apply for a
permit to convert one or more residential units
by submitting an application and the required
fee to the Central Permit Bureau.

(b) The permit £ipplication shall contain the
following information:

(1) The name and address of the building in
which the conversions are proposed; and

(2) The names and addresses of all owners
or operators of said building; and

(3) A description of the proposed conversion
including the nature of the conversion, the total
number of units in the building, their current
uses; and

(4) The room numbers and locations of the
units to be converted; and

(5) Preliminary drawings showing the exist-
ing floor plans and proposed floor plans; and

(6) A description of the improvements or
changes proposed to be constructed or installed
and the tentative schedule for start of construc-
tion; and

(7) The current rental rates for each resi-
dential unit to be converted; and

(8) The length of tenancy of the permanent
residents affected by the proposed conversion;
and

(9) A statement regarding how one-for-one
replacement of the units to be converted will be
accomplished, including the proposed location of
replacement housing if replacement is to be
provided off-site; and

(10) A declaration under penalty of perjury
from the owner or operator stating that he/she
has complied with the provisions of Section
41.14(b) below and his/her filing of a permit to
convert. On the same date of the filing of the
application, a notice that an application to con-
vert has been filed shall be posted until a deci-
sion is made on the application to convert.

(c) Upon receipt of a completed application
to convert or demolish, the Department of Build-
ing Inspection shall send the application to the
Department of City Planning for review and
shall mail notice of such application to interested
community organizations and such other per-
sons or organizations who have previously re-
quested such notice in writing. The notice shall
identify the hotel requesting the permit, the
nature of the permit, the proposal to fulfill the

Sec. 41.12.

San Francisco - Administrative Code

3872

replacement requirements of Section 41.13 herein,
and the procedures for requesting a pubhc hear-
ing. Owner or operator shall post a notice inform-
ing permanent residents of such information.

(d) Any interested party may submit a writ-
ten request within 15 days of the date notice is
posted pursuant to subsection (c) above to the
City Planning Commission to schedule and con-
duct a public hearing on the proposed conversion
in order to solicit public opinion on whether to
approve or deny a permit to convert or demolish
residential units and to determine whether pro-
posed replacement units are "comparable units"
as defined in Section 41.4(b) herein. (Added by
Ord. 121-90, App. 4/12/90; amended by Ord.
134-01, File No. 001926, App. 7/6/2001)

SEC. 41.13. ONE-FOR-ONE
REPLACEMENT.

(a) Prior to the issuance of a permit to
convert, the owner or operator shall provide
one-for-one replacement of the units to be con-
verted by one of the following methods:

(1) Construct or cause to be constructed a
comparable unit to be made available at compa-
rable rent to replace each of the units to be
converted; or

(2) Cause to be brought back into the hous-
ing market a comparable unit from any building
which was not subject to the provisions of this
Chapter; or

(3) Construct or cause to be constructed or
rehabilitated apartment units for elderly, dis-
abled or low-income persons or households which
may be provided at a ratio of less than one-to-
one; or construct or cause to be constructed
transitional housing which may include emer-
gency housing. The construction of any replace-
ment housing under this subsection shall be
evaluated by the City Planning Commission in
accordance with the provisions of Section 303 of
the City Planning Code, A notice of said City
Planning Commission hearing shall be posted by
the owner or operator 10 calendar days before
the hearing; or

(4) Pay to the City and County of San
Francisco an amount equal to 80 percent of the
cost of construction of an equal number of com-
parable units plus site acquisition cost. All such
payments shall go into a San Francisco Residen-
tial Hotel Preservation Fund Account. The De-
partment of Real Estate shall determine this
amount based upon two independent appraisals;
or

(5) Contribute to a public entity or non-
profit organization, who will use the funds to
construct comparable units, an amount at least
equal to 80 percent of the cost of construction of
an equal number of comparable units plus site
acquisition cost. The Department of Real Estate
shall determine this amount based upon two
independent appraisals. In addition to compli-
ance with all relevant City ordinances and regu-
lations, the public entity or nonprofit organiza-
tion and the housing development proposal of
such public entity or nonprofit organization shall
be subject to approval by the Mayor's Office of
Housing.

(A) Such contribution shall be paid to the
approved public entity or nonprofit organization
in installments from an escrow account super-
vised by the Mayor's Office of Housing, upon
application by such public entity or nonprofit
organization to the Mayor's Office of Housing, for
specified expenditures, including but not limited
to site acquisition costs, architect's fees, and
construction costs; such payment shall be ap-
proved by the Mayor's Office of Housing prior to
release of funds.

(B) The permit to convert shall be issued by
the City when owner or operator deposits the full
amount of funds in an escrow account described
in subsection 41.13(a)(5)(A) above, or provides
other form of nonrefundable security acceptable
to the City Attorney and the Mayor's Office of
Housing.

(C) In the event that the public entity or
nonprofit organization is unable to complete con-
struction of the replacement housing, any un-
paid amounts shall be released to the City. All
such funds shall go into a San Francisco Resi-
dential Hotel Preservation Fund Account.

3873

Residential Hotel Unit Conversion and Demolition

Sec. 41.13.

(b) Any displaced permanent resident relo-
cated to replacement units provided under Sub-
division (a) above shall be deemed to have con-
tinued his occupancy in the converted unit for
the purpose of administering Subsection (k) of
Section 37.2, San Francisco Administrative Code
(San Francisco Rent Stabilization and Arbitra-
tion Ordinance).

(d) In the event that a completed applica-
tion for a permit to convert is filed by a hotel
owner or operator no later than the effective date
of this amended Chapter, and such hotel owner
or operator elects to provide one-for-one replace-
ment of the residential units pursuant to Section
41.13(a) (4) or Section 41.13(a) (5) herein, the
hotel owner or operator shall be obligated to pay
to the City and County of San Francisco an
amount equal to 40 percent of the cost of con-
struction of an equal number of comparable
units plus site acquisition cost, provided that
such hotel owner or operator shall pay such
amount to the City or provide to the City security
for such pa.yment in a form satisfactory to the
Mayor's Office of Housing and the City Attorney
within 90 days following the date that the De-
partment of Building Inspection determines that
the application for a permit to convert is com-
plete, or, if necessary, 10 days following final
action, including any appeals, by the Planning
Commission or appellate body, or 10 days follow-
ing the Department of Real Estate's determina-
tion of such amount, whichever occurs latest. In
the event that a hotel owner or operator elects to
provide one-for-one replacement pursuant to Sec-
tion 41.13(a)(2) or (a)(5) herein and the Mayor's
Office of Housing has not approved a proposal or
organization thereunder prior to the effective
date of this amended Chapter, the Department of
Building Inspection shall not reject such appli-
cation as incomplete for such lack of information.
If a hotel owner or operator applies for a permit
to convert using the one-for-one replacement
option described in 41.13(a)(2) or (a)(5) and the
Mayor's Office of Housing does not approve a
housing development proposal or a nonprofit
organization, or such project fails to progress

through no fault of the owner or operator, such
applicant shall be permitted to provide one-for-
one replacement pursuant to Section 41.13 (a)(4)
at 40 percent of the cost of construction of an
equal number of comparable units plus site ac-
quisition costs, provided that such applicant files
the application under Section 41.13(a)(2) or (a)(5)
no later than the effective date of this amended
Chapter. The hotel owner or operator shall iden-
tify such housing proposal or nonprofit organiza-
tion within 180 days of the effective date of this
amended Chapter. In the event that the Mayor's
Office of Housing finds that the permit applicant
has acted in good faith in seeking a project, the
Mayor's Office of Housing may exercise its rea-
sonable discretion to extend the provisions of
this subsection for an additional 180 days. In the
event that a project approved by the Mayor's
Office of Housing fails to move forward through
no fault of the permit applicant, the applicant
may substitute another project within six months
of being notified by the Mayor's Office of Housing
of a failure of the prior project to move forward.
The Mayor's Office of Housing may extend this
period for an additional 180 days to identify such
new proposal. The City shall issue a permit to
convert under this subsection 41.13(d) only if the
hotel owner or operator has either paid the
40-percent in lieu fee to the City pursuant to
Section 41.13(a)(4) herein or complied with the
reciuirements of Sections 41.13(a)(2) or (a)(5) as
applicable. In the event that a hotel owner or
operator has not complied with any of these
requirements and the City has not issued a
permit to convert or if the Mayor's Office of
Housing has not found the hotel owner or opera-
tor has acted in good faith in seeking a project
pursuant to subsections 41.13(a)(2) or (a)(5) or
this subsection, no later than 180 days following
the effective date of this amended Chapter, or
such later date as herein provided, this Subsec-
tion 41.13(d) shall no longer be applicable, City
shall refund any amounts deposited as security
pursuant to the terms herein, and such hotel
owner or operator shall comply with all appli-
cable terms of this Chapter.

(e) When a residential unit is approved for
conversion to another use pursuant to the provi-
sions of Subsection 41.13(a)(2), (a)(4) or (a)(5)

Sec. 41.13.

San Francisco - Administrative Code

3874

above, such unit shall not be deemed to be
reconverted into a residential unit regardless of
any interim uses after payment as set forth in
Subsections 41.13(a)(2), (a)(4) or (a)(5).

(f) The funds deposited in the Residential
Hotel Preservation Fund may be used to (i)
create new affordable rental housing to replace
the affordable housing lost as a result of the
conversion or demolition of residential hotel units
subject to this Ordinance and (ii) defend the
Ordinance against legal challenge, including the
legal costs and attorney's fees incurred in the
defense. (Added by Ord. 121-90, App. 4/12/90;
amended by Ord. 134-01, File No. 001926, App.
7/6/2001; Ord. 46-05, File No. 050133, App. 3/23/
2005)

SEC. 41.14. MANDATORY DENIAL OF
PERMIT TO CONVERT.

A permit to convert shall be denied by Direc-
tor of the Department of Building Inspection if:

(a) The requirements of Sections 41.12 or
41.13, above, have not been fully complied with;

(b) The application is incomplete or con-
tains incorrect information;

(c) An applicant has committed unlawful
action as defined in this Chapter within 12
months previous to the issuance for a permit to
convert;

(d) The proposed conversion or the use to
which the unit would be converted is not permit-
ted by the City Planning Code. (Added by Ord.
121-90, App. 4/12/90; amended by Ord. 134-01,
File No. 001926, App. 7/6/2001)

SEC. 41.15. APPROVAL AND ISSUANCE
OF PERMIT TO CONVERT.

The Director of the Department of Building
Inspection shall issue a permit to convert, pro-
vided that:

(a) The requirements of Section 41.12 have
been met;

(b) Evidence of compliance with the require-
ments of Section 41.13 has been submitted. Sat-
isfactory evidence of compliance may be:

(1) A certification of final completion or per-
mit of occupancy on the replacement housing; or

(2) A receipt from the City Treasurer that
the in-lieu pa3Tiient determined by the Depart-
ment of Real Estate has been received; and

(3) Evidence of compliance with the require-
ments of Section 41.17 herein.

(d) Concurrent with the issuance of a per-
mit to convert, the Director of the Department of
Building Inspection shall issue a new certificate
of use which shall state the newly certified
number of residential units and tourist units.
(Added by Ord. 121-90, App. 4/12/90; amended
by Ord. 134-01, File No. 001926, App. 7/6/2001)

SEC. 41.16. APPEAL OF DENIAL OR
APPROVAL OF PERMIT TO CONVERT.

(a) Denial or approval of a permit applica-
tion may be appealed to the Board of Permit
Appeals, pursuant to Sections 8 et seq. Part III of
the San Francisco Municipal Code.

(b) The owner or operator shall submit a
statement under the penalty of perjury that he
has notified all the affected permanent residents
of his appeal and of the date, time and place of
the hearing before the Board of Permit Appeals,
seven calendar days prior to the scheduled hear-
ing.

(c) The appellant shall have the burden of
proving that the determination of the Director of
the Department of Building Inspection is in-
vaHd. (Added by Ord. 121-90, App. 4/12/90;
amended by Ord. 134-01, File No. 001926, App.
7/6/2001)

SEC. 41.17. RIGHTS OF PERMANENT
RESIDENTS.

(a) To apply for a permit to convert, an
owner or operator of the hotel shall do the
following:

(1) Any interested community organization
and all permanent residents residing in said
building at the time of an application for a
permit to convert and thereafter shall be timely

3875

Residential Hotel Unit Conversion and Demolition

Sec. 41.19.

informed of all public hearings and administra-
tive decisions concerning said conversion; said
notice shall be posted by the owner or operator;

(2) A permanent resident has the right to
occupy his/lier residential unit for 60 calendar
days from the issuance of the permit to convert;

(3) Owner or operator shall offer a perma-
nent resident available comparable units in the
building, or to any replacement housing provided
pursuant to Subsection 41.13(a)(1) or (2);

(4) All displaced permanent residents are
entitled to relocation assistance as provided for
in subsection (b) below;

(5) Seven calendar days prior to the filing of
an application for a permit to convert, the owner
or operator shall notify, in writing, by personal
service, or registered or certified mail, every
permanent resident affected by the proposed
conversion of his/her intent to convert desig-
nated units;

(6) The notification required by Subsection
(5) above shall also inform the permanent resi-
dents of their rights under Subsections (1) through
(4) above.

(b) Relocation Assistance.

(1) A permanent resident, who as a result of
the conversion of his/her unit must relocate off
site, shall be reimbursed the actual moving ex-
penses not to exceed $300 or may consent to be
moved by the owner or operator.

(2) A displaced permanent resident shall
have the right of first refusal for the rental or
leasing of replacement units, if any, provided
pursuant to the provisions of Sections 41.13(a)(1)
or 41.13(a)(2).

(3) A permanent resident displaced by par-
tially completed conversion under the provisions
of Section 41.7(c) shall be entitled to a displace-
ment allowance of $1,000 per displaced person.
(Added by Ord. 121-90, App. 4/12/90)

SEC. 41.18. DEMOLITION.

(a) This section shall apply only to demoli-
tion of residential hotel buildings pursuant to an
abatement order of the Director of Public Works
or the Superior Court of the State of California,
or demolition necessitated by major fires, natu-

ral causes or accidents where the cost of repair
exceeds 50 percent of the replacement value of
the building.

(b) Upon submission of an application for a
demolition permit, the owner or operator shall
post a copy of said application.

(c) Upon notification by the Central Permit
Bureau that a demolition permit has been is-
sued, the owner or operator shadl post a notice
explaining the procedure for challenging the
issuance of the demolition permit to the Board of
Permit Appeals.

(d) When issued a demolition permit, the
owner or operator shall provide a written notice
of the demolition within 10 calendar days of
issuance of the permit to each residential perma-
nent resident. Each permanent resident shall be
notified in writing of his/her rights to relocation
assistance and to occupy the same unit for a
period of up to 60 days after issuance of the
demolition permit.

(e) The subsequent issuance of a building
permit for construction on the demolished site
shall be conditioned on the owner or operator's
agreement to replace, on a one-for-one basis, the
demolished residential units as required by the
provisions of Section 41.13. No building permit
shall be issued until owner or operator complies
with the provisions of Section 41.13.

(f) The conditions for issuance of a demoli-
tion permit set forth in subsection (e) above shall
be recorded by the owner at the time of issuance
of the demolition permit in order to provide
notice of said conditions to all subsequent pur-
chasers and interested parties. (Added by Ord.
121-90, App. 4/12/90)

SEC. 41.19. TEMPORARY CHANGE OF
OCCUPANCY.

(a) Temporary Change of Occupancy.

(1) A tourist unit may be rented to a perma-
nent resident, until voluntary vacation of that
unit by the permanent resident or upon eviction
for cause, without changing the legal status of
that unit as a tourist unit.

Sec. 41.19.

San Francisco - Administrative Code

3876

(2) A permanent resident may be relocated
for up to 21 days to another unit in the residen-
tial hotel for purposes of complying with the
Building Code requirements imposed by the UMB
Seismic Retrofit Ordinance, Ordinance No. 219-
92, without changing the designation of the unit.

(3) A residential unit which is vacant at any
time during the period commencing on May 1st
and ending on September 30th annually may be
rented as a tourist unit, provided that (i) the
residential unit was vacant due to voluntary
vacation of a permanent resident or was vacant
due to lawful eviction for cause after the perma-
nent resident was accorded all the rights guar-
anteed by State and local laws during his/her
tenancy, (ii) the daily log shows that the residen-
tial unit was legally occupied for at least 50
percent of the period commencing on October 1st
and ending on April 30th of the previous year,
unless owner or operator can produce evidence to
the Department of Building Inspection explain-
ing such vacancy to the satisfaction of the De-
partment of Building Inspection, including but
not limited to such factors as repair or rehabili-
tation work performed in the unit or good-faith
efforts to rent the unit at fair market value; and
(iii) the residential unit shall immediately revert
to residential use upon application of a prospec-
tive permanent resident.

25-percent Limit.

However, at no time during the period com-
mencing on May 1st and ending on September
30th may an owner or operator rent for nonresi-
dential use or tourist use more than 25 percent of
the hotel's total residential units unless the
owner or operator can demonstrate that (i) the
requirements of 41.19(a)(3) above are met, (ii)
good-faith efforts were made to rent such units to
prospective permanent residents at fair market
value for comparable units and that such efforts
failed and (iii) the owner or operator has not
committed unlawful action as defined in this
Chapter within 12 months prior to this request.
Owners or operators who seek to exceed this
limit must request a hearing pursuant to Section
41.11(b) above and the decision whether to per-
mit owners or operators to exceed this limit is
within the discretion of the hearing officer.

(b) Special Requirements for Hearings
on Tourist Season Rental of Residential
Units. Where an owner or operator seeks a
hearing in order to exceed the limit on tourist
season rental of vacant residential units pursu-
ant to Section 41.19(a)(3), the requirements of
41.11(b)(1), (b)(2) and (b)(3) above shall be apph-
cable except as specifically modified or enlarged
herein:

(1) Notice of Hearing. Notice of hearing
as provided in Section 41.11(b)(1) above shall be
given within 15 calendar days. The notice re-
quirements for the owner or operator shall also
be applicable to any interested party who has
submitted a prior written request to the Director
of the Department of Building Inspection to be
notified of such hearings.

(2) Time of Hearing. The hearing shall be
held within 30 days of the submission of the
owner or operator's written request for hearing.

(3) Burden of Proof. Burden of proof is on
the owner or operator.

(4) Interested Party. Any interested party
shall be deemed a "party to the hearing" for
purposes of Section 41.11(b)(1).

(5) Determination of the Hearing Of-
ficer. Based upon the evidence presented at the
hearing, conducted in accordance with Section
41.11(b)(3) above, the hearing officer shall make
findings as to (i) whether the residential unit
was vacant due to voluntary vacation of a per-
manent resident or was vacant due to lawful
eviction, (ii) whether the residential unit was
occupied for at least 50 percent of the period
commencing on October 1st and ending on April
30th of the previous year, (iii) whether the owner
or operator has committed unlawful action un-
der this Chapter within 12 months prior to this
request, and (iv) whether the owner or operator
made good-faith efforts to rent vacant residential
units to prospective permanent residents at no
more than fair market value for a comparable
unit during the tourist season and yet was un-
able to secure such rentals. Good-faith efforts
shall include, but not be limited to, advertising
the availability of the residential units to the
public. In determining fair market value of the

3877

Residential Hotel Unit Conversion and Demolition

Sec. 41.20.

residential units, the hearing officer shall con-
sider any data on rental of comparable units, as
defined in Section 41.4(b) herein.

(6) Decision. The hearing officer shall ren-
der a written decision and findings within 10
working days of the hearing.

(7) Effect of Decision. The hearing officer's
decision shall remain in effect for the tourist
season for which the owner or operator re-
quested the hearing. If the owner or operator
wishes to exceed the 25 percent limit during any
subsequent tourist season, a new written re-
quest for hearing must be submitted to the
Director of the Department of Building Inspec-
tion.

(8) Construction. The purpose of this Sec-
tion 41.19(b) is to supplement or modify provi-
sions of Section 41.11(b) (1) through (b)(3). Un-
less otherwise specifically modified, all provisions
of Sections 41.11(b)(1) through (b)(3) are deemed
applicable to hearings concerning the tourist
season limitation on rental of vacant residential
units.

(c) Winter Rentals. A residential unit which
is vacant at any time during the period commenc-
ing on October 1st and ending on April 30th
annually may be rented as a tourist unit, pro-
vided that:

( 1 ) Such owner or operator has been permit-
ted to rent residential units as tourist units in
excess of 25 percent of the residential units
pursuant to Section 41.19(a)(3) above;

(2) The owner or operator has not commit-
ted unlawful action as defined in this Chapter
within 12 months prior to the time of this re-
quest;

(3) A residential hotel may not rent in ex-
cess of 33 percent of the total number of residen-
tial units or 20 residential units, whichever is
less, pursuant to this subsection;

(4) Applicants to temporarily convert resi-
dential units pursuant to this subsection shall
submit applications to the Department of Public
Works, in accordance with rules and regulations
promulgated by the Department of Public Works;

(5) A maximum of 60 residential units may
be approved per year to be rented as tourist units
or non-residential units pursuant to this Subsec-
tion 41.19(c). In the event that the number of
such applications exceeds 60 residential units,
the Department of Public Works shall establish a
lottery system based on priority ranking where
preference shall be accorded to residential hotel
owner who have been eligible more frequently
than other hotel owners for temporary conver-
sion pursuant to Subsection 41.19(a)(3) above;

(6) Such nonresidential use is permitted by
the zoning for such residential hotel; and

(7) No application for such temporary con-
version shall be appi'oved by the Department of
Public Works to fill the unused portion of the 60
residential unit limitation for the previous year.
(Added by Ord. 121-90, App. 4/12/90; amended
by Ord. 219-92, App. 7/14/92; Ord. 134-01, File
No. 001926, App. 7/6/2001)

SEC. 41.20. UNLAWFUL CONVERSION;
REMEDIES; FINES.

(a) Unlawful Actions. It shall be unlawful
to:

(1) Change the use of, or to eliminate a
residential hotel unit or to demolish a residential
hotel unit except pursuant to a lawful abatement
order, without first obtaining a permit to convert
in accordance with the provisions of this Chap-
ter;

(2) Rent any residential unit for a term of
tenancy less than seven days except as permit-
ted by Section 41.19 of this Chapter;

(3) Offer for rent for nonresidential use or
tourist use a residential unit except as permitted
by this Chapter.

(b) Hearing for Complaints of Unlawful
Conversions. Upon the filing of a complaint by
an interested party that an unlawful conversion
has occurred and payment of the required fee,
the Director of the Department of Building In-
spection shall schedule a hearing pursuant to
the provisions of Section 41.11(b). The complain-
ant shall bear the burden of proving that a unit
has been unlawfully converted. The hearing of-

Sec. 41.20.

San Francisco - Administrative Code

3878

ficer shall consider, among others, the following
factors in determining whether a conversion has
occurred:

(1) Shortening of the term of an existing
tenancy without the prior approval of the perma-
nent resident;

(2) Reduction of the basic services provided
to a residential unit intended to lead to conver-
sion. For the purpose of this section, basic ser-
vices are defined as access to common areas and
facilities, food service, housekeeping services and
security;

(3) Repeated failure to comply with order of
the Department of Building Inspection or the
Department of Public Health to correct code
violations with intent to cause the permanent
residents to voluntarily vacate the premises;

(4) Repeated citations by the Director of the
Department of Building Inspection or the Depart-
ment of Public Health for Code violations;

(5) Offer of the residential units for nonresi-
dential use or tourist use except as permitted in
this Chapter;

(6) Eviction or attempts to evict a perma-
nent resident from a residential hotel on grounds
other than those specified in Sections 37.9(a)(1)
through 37.9(a)(8) of the San Francisco Admin-
istrative Code except where a permit to convert
has been issued;

(7) Repeated posting by the Director of the
Department of Building Inspection of notices of
apparent violations of this Chapter pursuant to
Section 41.11(c) above.

(c) Civil Penalties. Where the hearing of-
ficer finds that an unlawful conversion has oc-
curred, the Director of the Department of Build-
ing Inspection shall impose a civil penalty of
three times the daily rate per day for each
unlawfully converted unit from the day the com-
plaint is filed until such time as the unit reverts
to its authorized use. The daily rate shall be the
rate unlawfully charged by the hotel owner or
operator to the occupants of the unlawfully con-
verted unit. The Director may also impose pen-
alties upon the owner or operator of the hotel to
reimburse City or complainant for the costs of
enforcement, including reasonable attorneys' fees.

of this Chapter. The hearing officer's decision
shall notify the parties of this penalty provision
and shall state that the Director of the Depart-
ment of Building Inspection is authorized to
impose the appropriate penalty by written noti-
fication to both the owner and operator, request-
ing payment within 30 days. If the penalty
imposed is not paid, a lien to secure the amount
of the penalty will be recorded against the real
property pursuant to the provisions of Section
41.20(d) of this Chapter.

(d) Lien Proceedings. If any penalty im-
posed pursuant to Sections 41.10(d), 41.10(f),
41.11(f) or 41, 20(c) is not received within the
required time period, the Director of the Depart-
ment of Building Inspection shall initiate pro-
ceedings under Article XX of Chapter 10 of the
San Francisco Administrative Code to make the
penalty, plus accrued interest, a lien against the
real property regulated under this Chapter. Ex-
cept for the release of lien recording fee autho-
rized by Administrative Code Section 10.237, all
sums collected by the Tax Collector pursuant to
this ordinance shall be held in trust by the
Treasurer and distributed as provided in Section
41.8(e) of this Chapter.

(e) Civil Action. An interested party may
institute a civil proceeding for injunctive relief
and damages. The Director of the Department of
Building Inspection may institute a civil proceed-
ing for injunctive relief. Counsel for the inter-
ested party shall notify the City Attorney's office
of the City and County of San Francisco of any
action filed pursuant to this Section. In deter-
mining whether an unlawful conversion has oc-
curred, the court may consider, among other
factors, those enumerated in Section 41.20(b) of
this Chapter. The interested party instituting a
civil proceeding, or the City suing to enforce this
Chapter, if prevailing parties, shall be entitled to
the costs of enforcing this Chapter, including
reasonable attorney's fees, pursuant to an order
of the Court. (Added by Ord. 121-90, App. 4/12/
90; amended by Ord. 322-00, File No. 001917,
App. 12/28/2000; Ord. 134-01, File No. 001926,
App. 7/6/2001)

3879

Residential Hotel Unit Conversion and Demolition

Sec. 41.22.

SEC. 41.21. ANNUAL REVIEW OF
RESIDENTIAL HOTEL STATUS.

(a) The Department of Building Inspection
shall prepare and submit to the Board of Super-
visors an annual status report containing the
following:

(1) Current data on the number of residen-
tial hotels and the number of residential units in
each of the residential hotels in the City and
County of San Francisco, including, to the extent
feasible, information regarding rents, services
provided, and violations of the City's Codes;

(2) Current data on the number of residen-
tial hotel units converted pursuant to a permit to
convert;

(3) Current data on the number of hotel
units demolished or eliminated due to code abate-
ment proceedings and fire;

(4) Current data on the number of residen-
tial hotel units illegally converted;

(5) Current data on the number of replace-
ment housing units rehabilitated or constructed;

(6) A summary of the enforcement efforts by
all City agencies responsible for the administra-
tion of this Chapter; and

(7) An evaluation of the workability and
effectiveness of the permitted temporary change
of occupancy procedures and winter rentals in
Section 41.19 herein; and

(8) A report on expenditures from the San
Francisco Residential Hotel Preservation Fund
Account.

(b) The Economic and Social Policy Commit-
tee of the Board of Supervisors shall conduct a
hearing on the annual report submitted by the
Department of Building Inspection and shall
recommend appropriate actions to be taken by
the Board of Supervisors.

(c) The Department of Building Inspection
should establish a San Francisco Residential
Hotel Opersitors Advisory Committee composed
of:

— 3 members nominated by the San Francisco
Hotel Association (for-profit operators);

— 3 members nominated by the Golden Gate
Hotel Association (for-profit operators);

— 2 members nominated by the Council of
Community Housing Organizations (non-
profit hotel operators);

— Deputy Mayor for Housing.

The committee shall meet no less than once
every three months to advise the Mayor's Office
of Housing on matters including, but not limited
to:

(1) Proposed revisions to this ordinance;

(2) Programs that various City agencies (i.e.
Mayor's Office of Housing, Department of Social
Services, etc.) should develop to assist the City's
residential hotel operators;

(3) Any state or federal laws the City should
support, oppose or seek to revise that impact
residential hotel operators;

(4) Any new City, State or Federal pro-
grams the City shall encourage that would pro-
vide financial or technical support or assistance
to San Francisco Residential Hotel Operators.
(Added by Ord. 121-90, App. 4/12/90; amended
by Ord. 134-01, File No. 001926, App. 7/6/2001)

SEC. 41.22. CONSTRUCTION.

(a) Nothing in this Chapter may be con-
strued to supersede any other lawfully enacted
ordinance of the City and County of San Fran-
cisco, except that definitions provided in this
Chapter shall govern the enforcement of this
Chapter.

(b) Clauses of this Chapter are declared to
be severable and if any provision or clause of this
Chapter or the application thereof is held to be
unconstitutional or to be otherwise invalid by
any court of competent jurisdiction, such inval-
idity shall not affect other provisions of this
Chapter. (Added by Ord. 121-90, App. 4/12/90)

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San Francisco - Administrative Code

[INTENTIONALLY LEFT BLANK]

CHAPTER 41A: APARTMENT UNIT CONVERSION AND DEMOLITION

Sec. 41A.1. Title.

Sec. 41A.2. Purpose.

Sec. 41A.3. Findings.

Sec. 41A.4. Definitions.

Sec. 41A.5. Unlawful Conversion; Remedies.

Sec. 41A.6. Report on Apartment

Conversion.
Sec. 41A.7. Construction.
Sec. 41A.8. Procedures for Determining and

Appealing Administrative

Penalties.

SEC. 41A.1. TITLE.

This chapter shall be known as the Apart-
ment Unit Conversion Ordinance. (Added by
Ord. 331-81, App. 6/26/81)

SEC. 41A.2. PURPOSE.

It is the purpose of this ordinance to benefit
the general public by minimizing adverse im-
pacts on the housing supply and on persons and
households of all income levels resulting from
the loss of apartment units through their conver-
sion to tourist and transient use. This is to be
accomplished by regulating the conversion of
apartment units to tourist and transient use,
and through appropriate administrative and ju-
dicial remedies. (Added by Ord. 331-81, App.
6/26/81)

SEC. 41A.3. FINDINGS.

The Board of Supervisors finds that:

(a) There is a severe shortage of decent,
safe, sanitary and affordable rental housing in
the City and County of San Francisco.

(b) The people of the City and County of
San Francisco, cognizant of the housing shortage
in San Francisco, on November 4, 1980, adopted
a declaration of policy to increase the City and
County's housing supply by 20,000 units.

(d) As a result of the removal of apartment
units from the rental housing market, a housing
emergency exists within the City and County of
San Francisco for its elderly, disabled and low-
income households.

(e) The Board of Supervisors and the Mayor
of the City and County of San Francisco recog-
nized this housing emergency and enacted an
ordinance which established a moratorium on
the conversion of apartment units to tourist and
transient use.

(f) The conversion of apartment units to
tourist and transient use impacts especially on
persons seeking housing in the low to moderate
price range.

(g) It is in the public interest that conver-
sion of apartment units be regulated and that
remedies be provided when unlawful conversion
has occurred, in order to protect the resident
tenants and to conserve the limited housing
resources. (Added by Ord. 331-81, App. 6/26/81)

SEC. 41A.4. DEFINITIONS.

(a) Apartment Unit. Room or rooms in
any building, or portion thereof, which is de-
signed, built, rented, leased, let or hired out to be
occupied, or which is occupied as the home or
residence of four or more households living inde-
pendently of each other in dwelling units as
defined in the San Francisco Housing Code,
provided that the apartment unit was occupied
by a permanent resident on or after February 8,
1981. It is presumed that an apartment unit was
occupied by a permanent resident on or after
February 8, 1981, and the owner has the burden
of proof to show that an apartment unit is not
subject to this Chapter.

3901

Sec. 41A.4.

San Francisco - Administrative Code

3902

(b) Residential Use. Any use for occu-
pancy as a dwelling unit by a permanent resi-
dent.

apartment unit for occupancy on less than a
30-day term of tenancy.

(d) Permanent Resident. A person who
occupies an apartment unit for at least 60 con-
secutive days with intent to establish that unit
as his or her principal place of residence.

(e) Conversion or Convert. The change of
the use or to rent an apartment unit from resi-
dential use to tourist or transient use.

(f) Owner. Owner includes any person who
is the owner of record of the real property. Owner
includes a lessee where an interested party al-
leges that a lessee is offering an apartment unit
for tourist or transient use.

(g) Interested Party. A permanent resi-
dent of the building in which the tourist or
transient use is alleged to occur or the City and
County of San Francisco.

(h) Director. The Director of the Depart-
ment of Building Inspection. (Added by Ord.
331-81, App. 6/26/81; amended by Ord. 74-98,
App. 3/16/98)

SEC. 41A.5. UNLAWFUL CONVERSION;
REMEDIES.

(a) Unlawful Actions. It shall be unlawful
for any owner to offer an apartment unit for rent
for tourist or transient use.

(b) Determination of Violation. Upon the
filing of a complaint by a permanent resident
that an unlawful conversion has occurred, the
Director shall take reasonable steps necessary to
determine the validity of the complaint. The
Director may independently determine whether
an owner may be renting an apartment unit for
tourist or transient use as defined in this Chap-
ter. To determine if there is a violation of this
Chapter, the Director may initiate an investiga-
tion of the subject property. This investigation
may include, but is not limited to, an inspection
of the subject property and a request for any
pertinent information from the owner, such as
leases or other documents.

(c) Civil Action. Except as provided by
Subsection (1) below, any interested party may
institute proceedings for injunctive and mon-
etary relief for violation of this Chapter. In
addition, the owner may be liable for civil penal-
ties of not more than $1,000 per day for the
period of the unlawful rental. If the interested
party is the prevailing party, such party shall be
entitled to the costs of enforcing this Chapter,
including reasonable attorneys' fees, pursuant to
an order of the Court. If the interested party is a
permanent resident, then the interested party
shall retain the entire monetary award. Any
monetary award obtained by the City and County
of San Francisco in such a civil action shall be
deposited in the Mayor's Office of Housing, Hous-
ing Affordability Fund less the reasonable costs
incurred by the City and County of San Fran-
cisco in pursuing the civil action.

(1) If the interested party is a permanent
resident, such resident, as a condition to initiat-
ing civil proceedings pursuant to Subsection (c),
must satisfy the requirements set forth in Sec-
tion 41A.8(b)(2).

(d) Criminal Penalties. Any owner who
rents an apartment unit for tourist or transient
use as defined in this Chapter shall be guilty of a
misdemeanor. Any person convicted of a misde-
meanor hereunder shall be punishable by a fine
of not more than $1,000 or by imprisonment in
the County Jail for a period of not more than six
months, or by both. Each apartment unit rented
for tourist or transient use shall constitute a
separate offense.

(e) Method of Enforcement, Director.

The Director shall have the authority to enforce
this Chapter against violations thereof by any or
all of the means provided for in this Section.
(Added by Ord. 331-81, App. 6/26/81; amended
by Ord. 74-98, App. 3/6/98)

SEC. 41A.6. REPORT ON APARTMENT
CONVERSION.

(a) The Department of City Planning shall
report to the Board of Supervisors on the conver-
sion of apartment units to tourist and commer-
cial uses and shall formulate comprehensive

3903

Apartment Unit Conversion and Demolition

Sec. 41A.8.

legislation for the Board of Supervisors to con-
sider within one year of the passage of this
ordinance.

(b) The Department of City Planning shall
specifically determine the following:

(1) The social, economic and physical im-
pact of such conversion upon low and moderate-
income households, which comprise a significant
portion of the residents of apartment units. These
groups shall include, but not be limited to, the
elderly, the disabled, minorities, single heads of
households with minor children, and other per-
sons with limited economic resources;

(2) The impact that such conversions will
have upon the total stock of low and moderate-
income housing in the City and County of San
Francisco as a whole, as well as the impact upon
the areas in which the units in question are
located;

(3) The effect of prohibition of the conver-
sion of said apartment units to tourist or com-
mercial uses unless replacement housing units
are provided on a one-to-one basis. (Added by
Ord. 331-81, App. 6/26/81)

SEC. 41A.7. CONSTRUCTION.

(a) Nothing in this Chapter may be con-
strued to supersede any other lawfully enacted
ordinance of the City and County of San Fran-
cisco.

(b) Clauses of this Chapter are declared to
be severable and if any provision or clause of this
chapter or the application thereof is held to be
unconstitutional or to be otherwise invalid by
any court of competent jurisdiction, such inval-
idity shall not affect other provisions of this
Chapter. (Added by Ord. 331-81, App. 6/26/81)

SEC. 41A.8. PROCEDURES FOR
DETERMCvTING AND APPEALING
ADMINISTRATIVE PENALTIES.

(a) Notice of Complaint. Within 10 days
of the filing of a complaint or upon the Director's
independent finding that there may be a viola-
tion of this Chapter, the Director shall notify the

owner by certified mail that the owner's apart-
ment unit is the subject of an investigation for an
unlawful rental.

(b) Director's Determination of a Viola-
tion; Notice. Upon reviewing the information
set forth in the complaint, if anj^, and any infor-
mation obtained by the Director during his or
her investigation, the Director shall determine
whether an owner has violated this Chapter. The
Director shall notify by certified mail the com-
plainant and the owner of his or her determina-
tion.

(1) If the Director determines that a viola-
tion has occurred, the Director's notice shall:

(A) Specify a reasonable period of time dur-
ing which the owner must correct or otherwise
remedy the violation; and

(B) State that if the violation is not cor-
rected or otherwise remedied within this period,
the owner may be required to pay the adminis-
trative penalties set forth in Subsection (c).

(2) If the Director determines that no viola-
tion has occurred, for purposes of filing a civil
action authorized by Section 41 A. 5(c)(1), the
Director's determination is final.

(1) Administrative Penalties. If the Di-
rector, upon further investigation, finds that the
violation has continued unabated beyond the
time specified in the notice required by Subsec-
tion (b)(1)(A), the Director may impose an admin-
istrative penalty of not more than three times
the rental rate charged for each unlawfully con-
verted unit from the day the unlawful rental
commenced until such time as the unlawful
rental terminates. The rental rate charged shall
be the rent charged, whether daily, weekly, or
otherwise calculated, for the apartment unit
during the period of the unlawful use.

(2) Enforcement Costs. The Director also
may require the owner to reimburse the City for
the costs of enforcement of this Chapter, which
shall include, but not be limited to, reasonable
attorneys' fees.

Sec. 41A.8.

San Francisco - Administrative Code

3904

(d) Notice of Director's Determination
of Continuing Violation and Imposition of
Penalties. The Director shall notify the owner
by certified mail that the violation has continued
unabated and that administrative penalties shall
be imposed pursuant to Subsection (c). The no-
tice shall state the basis of the Director's deter-
mination regarding the continued existence of
the violation and the resulting imposition of
penalties. The notice also shall inform the owner
of the right to request a hearing within 10 days
of the notice date to contest the Director's deter-
mination on the continuation of the violation and
the imposition of penalties.

(e) Confirmation of Continuing Viola-
tion and Imposition of Penalties. If no re-
quest is timely filed for an administrative review
hearing, the Director's determination regarding
the continuation of the violation and the imposi-
tion of penalties shall be deemed confirmed. The
Director may then request payment of the ad-
ministrative penalties and enforcement costs
within 30 days of the certified mailed notice to
the owner. If the administrative penalties and
enforcement costs are not paid, the Director is
authorized to initiate lien procedures to secure
the amount of the penalties and costs against the
real property that is subject to this Chapter,
pursuant to the provisions of Section 41.20(d) of
this Code; provided however, that the City Trea-
surer shall distribute all sums collected pursu-
ant to Subsection (1) herein.

(f) Notice of Administrative Review
Hearing. Whenever an administrative review
hearing is requested pursuant to Subsection (d),
the Director, within 45 calendar days of the
request, shall notify the owner of the date, time,
and place of the hearing by certified mail. Notice
of the hearing shall be conspicuously posted on
the building that is the subject of the hearing.
The owner shall state under oath at the hearing
that the notice remained posted for at least 10
calendar days prior the hearing. The Director
shall appoint a hearing officer to conduct the
hearing.

(g) Pre-hearing Submission. No less than
three working days prior to the administrative
review hearing, parties to the hearing shall

submit written information to the Department of
Building Inspection including, but not limited to,
the following: the issues to be determined by the
hearing officer and the evidence to be offered at
the hearing. Such information shall be for-
warded to the hearing officer prior to the hearing
along with any information compiled by the
Director.

(h) Hearing Procedure. If more than one
hearing is requested for apartment units located
in the same building at or about the same time,
the Director shall consolidate all of the hearings
into one hearing. The hearing shall be tape
recorded. Any party to the hearing may at his or
her own expense, cause the hearing to be re-
corded by a certified court reporter. Parties may
be represented by counsel and have the right to
cross-examine witnesses. All testimony shall be
given under oath. Written decisions and findings
shall be rendered by the hearing officer within
20 working days of the hearing. Copies of the
findings and decision shall be served upon the
parties by certified mail. A notice that a copy of
the findings and decision is available for inspec-
tion between the hours of 9:00 a.m. and 5:00 p.m.
Monday through Friday shall be posted by the
owner in the building in the same location in
which the notice of the administrative review
hearing was posted.

(i) Finality of the Hearing Officer's De-
cision and Appeal. The decision of the hearing
officer shall be final. Within 20 days after service
of the hearing officer's decision, any party other
than the City and County of San Francisco, may
seek review of the hearing officer's decision by
the municipal court, according to the procedures
set forth in California Government Code Section
53069.4.

(j) Confirmation of Hearing Officer De-
cision. If no notice of appeal of the hearing
officer's decision is timely filed, the decision shall
be deemed confirmed. If any imposed adminis-
trative penalties and costs have not been depos-
ited at this time, the Director may proceed to
collect the penalties and costs pursuant to the
lien procedures set forth in Subsection (e).

3905 Apartment Unit Conversion and Demolition Sec. 41A.8.

(k) Collection of Penalties after Munici-
pal Court Decision. If the court finds in favor
of the contestant, the amount of the municipal
court filing fee shall be reimbursed to the con-
testant by the City and County of San Francisco.
If the administrative penalty has been deposited,
the City and County of San Francisco shall
distribute the administrative penalty in accor-
dance with the judgment of the court. If the
administrative penalties and enforcement costs
have not been deposited and the decision of the
municipal court is against the contestant, the
Director may proceed to collect the penalties and
costs.

(1) Deposit of Penalties. Administrative
penalties paid pursuant to this Chapter shall be
deposited in the Mayor's Office of Housing, Hous-
ing Affordability Fund less the reasonable costs
incurred by the City and County of San Fran-
cisco in pursuing the lien procedures set forth in
Subsection (e), if such procedures were under-
taken. If enforcement costs were imposed pursu-
ant to Subsection (c), such funds shall be distrib-
uted according to the purpose for which they
were collected. (Added by Ord. 74-98, App. 3/6/
98)

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San Francisco - Administrative Code

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CHAPTER 41B: [RESERVED]

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San Francisco - Administrative Code

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CHAPTER 41C: TIME-SHARE CONVERSION ORDINANCE

Sec. 41C.1.

Sec. 41C.2.

Sec. 41C.3.

Sec. 41C.4.

Sec. 41C.5.

Sec. 41C.6.

Sec. 41C.7.

Title.

Findings.

Definitions.

Conversions Prohibited.

Enforcement.

Review of Ordinance.

Severability.

SEC. 41C.1. TITLE.

This Chapter may be referred to as the Time-
Share Conversion Ordinance. (Added by Ord.
82-86, App. 3/21/86)

SEC. 41C.2. FINDINGS.

(a) There is a severe shortage of permanent
housing in San Francisco.

(b) A small supply of suitable vacant land,
zoning constraints, construction costs and other
factors limit the construction of additional hous-
ing in San Francisco.

(c) Population pressures and other demo-
graphic trends cause great demand and are
likely to accelerate the demand for San Fran-
cisco housing,

(d) In light of housing demand and limited
new construction, conserving existing perma-
nent housing is especially important.

(e) Conversion of permanent housing to tour-
ist or other temporary use removes housing
units from the available stock and worsens the
existing shortage.

(f) The shortage of housing most acutely
affects low- and moderate-income persons, the
elderly and the disabled, both those already
living in San Francisco and those wishing to
move to the City. Conversion of permanent hous-
ing to tourist or other temporary use most seri-
ously affects low- and moderate-income persons,
the elderly and the disabled, both those already
living in San Francisco and those wishing to
move to the City.

(g) At this time, there appears to be no
shortage of lodging facilities for visitors in San
Francisco.

(h) It is in the public interest to prohibit
any additional conversions of permanent hous-
ing, whether occupied or unoccupied, to time-
share use, which is principally suitable for or
used by visitors and other temporary users.

(i) The purpose of this ordinance is to ben-
efit the general public by presei-ving the supply
of existing permanent housing and minimizing
adverse effects on persons and households of all
income levels, including but not limited to lower-
and moderate-income, elderly and disabled per-
sons, by prohibiting the conversion of dwelling
units to time-share use and authorizing appro-
priate remedies. (Added by Ord. 82-86, App.
3/21/86)

SEC. 41C.3. DEFINITIONS.

When used in this ordinance, the following
terms shall each have the meaning indicated.

(a) "Residential unit" shall mean: (i) a dwell-
ing unit as defined in Section 203.4 of the Hous-
ing Code, or: (ii) any portion of a structure which
portion is part of a hotel as defined in Section
203.8 of the Housing Code; provided, however,
that "residential unit" shall not include any unit
classified as a tourist unit or a private club under
Chapter 41 of the Administrative Code, or any
unit covered by a preliminary public report is-
sued by the California Department of Real Es-
tate, pursuant to Sections 11010 et seq.. Busi-
ness and Professions Code, prior to January 1,
1986.

(b) "Time-share use" shall mean a right,
whatever its legal form, in perpetuity, for life, or
for a term of years, to the recurrent, exclusive
use or occupancy of any segment of real property,
annually or on some other periodic basis, for a
period of time that has been or will be allotted
from among periods established by deed, condi-

3927

Sec. 41C.3.

San Francisco - Administrative Code

3928

tion, agreement or other means, whether or not
coupled with an estate in real property. (Added
by Ord. 82-86, App. 3/21/86)

SEC. 41C.4. CONVERSIONS
PROHIBITED.

It shall be unlawful for any person to convert
to time-share use, offer to another for time-share
use or occupy as a time-share use any portion of
any structure which portion was a residential
unit not in time-share use on the initial effective
date of this Section. This prohibition shall not be
affected by any intervening change in use of the
unit. (Added by Ord. 82-86, App. 3/21/86)

SEC. 41C.7. SEVERABILITY.

If any part or parts of this ordinance should
be held unconstitutional or otherwise invalid,
that shall not affect the validity of any remain-
ing part or parts of this ordinance. The Board of
Supervisors hereby declares that it would have
passed each part of this ordinance irrespective of
the unconstitutionality or invalidity of any other
part or parts. (Added by Ord. 82-86, App. 3/21/
86)

SEC. 41C.5. ENFORCEMENT.

Violation of this ordinance shall be a misde-
meanor. The Bureau of Building Inspection shall
be responsible for enforcement of this ordinance,
and may recommend to the City Attorney or
District Attorney initiation of an action hereun-
der. The City Attorney shall have the power to
bring an action for injunctive or other judicial
relief hereunder. (Added by Ord. 82-86, App.
3/21/86)

SEC. 41C.6. REVIEW OF ORDINANCE.

Not later than four years and six months
after the initial effective date of this Section, the
Department of City Planning shall report to the
Board of Supervisors with respect to the subject
matter of this ordinance and the stock of perma-
nent housing in the City and County of San
Francisco, and may recommend, if appropriate,
the modification or repeal of this ordinance. Not
later than six months after receipt of said report,
the Board of Supervisors shall hold a hearing to
consider the contents of the report, and to con-
sider extension or repeal of this ordinance. Not
later than six months after receipt of said report,
the Board of Supervisors shall hold a hearing to
consider the contents of the report, and to con-
sider extension or repeal of this ordinance. This
ordinance shall be repealed five years after its
initial effective date unless the Board of Super-
visors shall on or before that date extend or
re-enact it. (Added by Ord. 82-86, App. 3/21/86)

[The next page is 3935]

CHAPTER 41D: RESIDENTIAL HOTEL VISITOR POLICIES

Sec. 41D.1. Title.

Sec. 41D.2. Purpose.

Sec. 41D.3. Authority of the Single Room
Occupancy Hotel Safety and
Stabilization Task Force,
Approval of the Initial Uniform
Visitor Policy for Residential
Hotels, and Subsequent
Authority of the Residential
Rent Arbitration and
Stabilization Board.

Sec. 41D.4. Required Goals for the Uniform
Visitor Policy and Any
Supplemental Visitor Policies.

Sec. 4 ID. 5. Hotel Operator Petitions for
Supplemental Visitor Policies.

Sec. 41D.6. Review and Amendment of the
Uniform Visitor Policy, and
Amendment of Criteria and
Procedures for Approving
Supplemental Visitor Policies.

Sec. 41D.7. Hotel Occupant Petitions for
Violation of this Chapter.

Sec. 41D.8. Limitation of Liability.

Sec. 41D.9. Severability

SEC. 41D.1. TITLE.

This Chapter shall be known as the Residen-
tial Hotel Visitor Policy Ordinance. For purposes
of this Chapter, "Residential Hotel" shall have
the same meaning as that set forth in Adminis-
trative Code Section 41.4(p), except that housing
sites operated by non-profit organizations for the
purpose of providing housing and supportive
services to victims and survivors of domestic
violence, as confirmed by the Department on the
Status of Women or its successor(s), shall be
exempt from the requirements of this Chapter.
(Added by Ord. 135-01, File No. 010526, App.
7/6/2001; amended by Ord. 62-02, File No. 020343,
App. 5/3/2002; Ord. 7-07, File No. 061538, App.
1/18/2007)

SEC. 41D.2. PURPOSE.

The purpose of this ordinance is to establish
a mechanism for the review and approval of
Visitor Policies for the City's Residential Hotels.
Such policies shall be designed to protect the
safety, welfare and dignity of guests and occu-
pants of Residential Hotels in the City. Pursuant
to Police Code Section 919.1, operators, employ-
ees or agents of Residential Hotels may not
impose or collect a fee for any person to visit a
guest or occupant of the hotel, nor restrict visi-
tors to guests or occupants of these hotels except
in accordance with an approved Visitor Policy, as
set forth in this Chapter. (Added by Ord. 135-01,
File No. 010526, App. 7/6/2001)

SEC. 41D.3. AUTHORITY OF THE
SINGLE ROOM OCCUPANCY HOTEL
SAFETY AND STABILIZATION TASK
FORCE, APPROVAL OF THE INITIAL
UNIFORM VISITOR POLICY FOR
RESIDENTIAL HOTELS, AND
SUBSEQUENT AUTHORITY OF THE
RESIDENTIAL RENT ARBITRATION AND
STABILIZATION BOARD.

(a) The Single Room Occupancy Hotel Safety
and StabiHzation Task Force ("SRO Task Force")
was created by Board of Supervisors Resolution
No. 868-99. In addition to the duties and obliga-
tions imposed by that resolution, the Task Force
was authorized by Ordinance No. 135-01 to carry
out the requirements of this Chapter for initial
api)roval of a Uniform Visitor Policy for Residen-
tial Hotels (Uniform Visitor Policy). The Task
Force fulfilled this responsibility on December 5,
2001, by adopting the initial "Uniform Visitor
Policy in SRO Hotels."

(b) Following SRO Task Force approval of
the initial Uniform Visitor Policy, the Residential
Rent Stabilization and Arbitration Board is au-
thorized to review and amend the Uniform Visi-
tor Policy from time to time, to establish criteria
and procedures for approval of Supplemental

3935

Supp. No. 11, September/October 2007

Sec. 41D.3.

San Francisco - Administrative Code

3936

Visitor Policies, and to hear and determine com-
plaints of non-compliance with the provisions of
this Chapter. No Visitor Policy may be imple-
mented or enforced prior to its approval in accor-
dance with this Chapter. (Added by Ord. 135-01,
File No. 010526, App. 7/6/2001; amended by Ord.
62-02, File No. 020343, App. 5/3/2002)

SEC. 41D.4. REQUIRED GOALS FOR
THE UNIFORM VISITOR POLICY AND
ANY SUPPLEMENTAL VISITOR
POLICIES.

(a) The Uniform Visitor Policy and any
Supplemental Visitor Policies shall meet the
following goals:

(1) To enhance the safety and welfare of
guests and occupants of Residential Hotels;

(2) To ensure the dignity and personal free-
dom of guests and occupants of residential hotels
and their visitors by eliminating unnecessary
restrictions on the ability of guests and occu-
pants of residential hotels to conduct their per-
sonal and social lives in the manner that they
choose.

(3) To prevent harassment or other inappro-
priate interference by residential hotel opera-
tors, employees or agents with the personal and
social lives of residential hotel guests and occu-
pants and their visitors.

(4) To respect the privacy rights and right
to quiet enjojnnent of other residential hotel
guests and occupants.

(5) To recognize the obligation of SRO op-
erators to maintain the safety of the premises.

(6) To incorporate and to be consistent with
the provisions of Police Code Section 919(a).

(7) To ensure that a SRO guest or occupant
may bring on the premises visitors to assist the
SRO guest or occupant with "get out the vote
activities" on the same basis as any other visitor
under the uniform visitor policy. For the pur-
poses of this subsection, the term "get out the
vote activities" means any activity that has as its
primary purpose encouraging SRO guests and
occupants to exercise their right to vote, includ-

ing but not limited to distributing handbills,
door hangers and flyers, as well as providing
assistance with transportation to the polls.

(b) However, nothing in the uniform visitor
policy or any supplemental visitor policy shall
encourage or allow any hotel to exceed its ap-
proved max;imum occupancy under state or local
fire safety laws. (Added by Ord. 135-01, File No.
010526, App. 7/6/2001; amended by Ord. 62-02,
File No. 020343, App. 5/3/2002; Ord. 213-07, File
No. 070590, App. 9/21/2007)

SEC. 41D.5. HOTEL OPERATOR
PETITIONS FOR SUPPLEMENTAL
VISITOR POLICIES.

(a) The operator of a Residential Hotel wish-
ing to add a Supplemental Visitor Policy to the
Uniform Visitor Policy may petition the San
Francisco Residential Rent Stabilization and Ar-
bitration Board for approval of a proposed Supple-
mental Policy. A Supplemental Visitor Policy
must be consistent with the Uniform Visitor
Policy, the goals required by Section 41D.4, and
other requirements of this Chapter.

(b) The Rent Board shall conduct a public
hearing on the proposed Supplemental Visitor
Policy, and either approve the proposed policy
and notify the operator in writing, or disapprove
and return the proposed policy to the operator
with a written explanation of the reasons why
the proposed policy does not meet the require-
ments for approval.

(c) Once approved, a Supplemental Visitor
Policy may be subject to periodic review by the
Rent Board. The Rent Board may require revi-
sions to an approved Supplemental Visitor Policy
where necessary in order to bring the policy into
conformity with Uniform Visitor Policy amend-
ments or other applicable law or regulations, or
to insure ongoing compliance with the goals
required by Section 41D.4. The Rent Board may
also withdraw approval of an approved Supple-
ment Visitor Policy upon finding that the policy
no longer meets the requirements for approval.

(d) A public hearing or meeting noticed un-
der this Section 41D.5, shall be noticed for a
minimum of ten (10) days. Notice shall be pro-

Supp. No. 11, September/October 2007

3937

Residential Hotel Visitor Policies

Sec. 41D.8.

vided to operators, occupants, law enforcement,
health and human service agencies, and inter-
ested organizations, according to Rent Board
rules and regulations promulgated for this pur-
pose.

(e) The Uniform Visitor Policy and Supple-
mental Visitor Policy shall be posted on a mini-
mum 8V2 inch by 11-inch sign in the lobby of each
Residential Hotel in an area accessible to guests
and occupants. (Added by Ord. 135-01, File No.
010526, App. 7/6/2001; amended by Ord. 62-02,
File No. 020343, App. 5/3/2002)

SEC. 41D.6. REVIEW AND AMENDMENT
OF THE UNIFORM VISITOR POLICY,
AND AMENDMENT OF CRITERIA AND
PROCEDURES FOR APPROVING
SUPPLEMENTAL VISITOR POLICIES.

(a) The Rent Board shall conduct an annual
public hearing to review the Uniform Visitor
Policy and adopt amendments as determined to
be appropriate under the goals and require-
ments of this Chapter. The Rent Board may also
consider and adopt amendments to the Uniform
Visitor Policy at other publicly noticed meetings,
as needed to effectuate the goals and require-
ments of this Chapter. Amendments may be
proposed by the Rent Board and its Executive
Director, and as permitted under Section 41D.6(c).

(b) The Rent Board may conduct a public
hearing to review the criteria and procedures for
approving Supplemental Visitor Policies and adopt
amendments, as determined to be appropriate
under the goals and requirements of this Chap-
ter. Amendments may be proposed by the Rent
Board and its staff, and as permitted under
Section 41D,6(c).

(c) Interested parties, including, but not
limited to, operators, guests and occupants, visi-
tors, law enforcement, health and human service
agencies and interested organizations may re-
quest that the Rent Board amend the Uniform
Visitor Policy or amend the criteria and proce-
dures for approval of Supplemental Visitor Poli-
cies. Placement of such requests on a Rent Board

agenda or notice of hearing shall be at the
discretion of the Rent Board and its Executive
Director.

(d) A public hearing or meeting noticed un-
der this Section 411). 6 shall be noticed for a
minimum of ten (10) days. Notice shall be pro-
vided to operators, occupants, law enforcement,
health and human service agencies, and inter-
ested organizations, according to Rent Board
rules and regulations promulgated for this pur-
pose. (Added by Ord. 135-01, File No. 010526,
App. 7/6/2001; amended by Ord. 62-02, File No.
020343, App. 5/3/2002)

SEC. 41D.7. HOTEL OCCUPANT
PETITIONS FOR VIOLATION OF THIS
CHAPTER.

(a) A current or former residential hotel
occupant who believes that the hotel has not
acted in compliance with the Uniform Visitor
Policy or any approved Supplemental Policy, or
who believes that the hotel has not otherwise
acted in compliance with the provisions of this
Chapter 4 ID, may petition the Rent Board for a
reduction in rent.

(b) Upon a finding of violation following a
hearing, the Rent BoEird may order a reduction of
rent for the aggrieved occupant.

(c) The Rent Board may promulgate Rules
and Regulations for the mediation and arbitra-
tion of such occupant petitions, including provi-
sion for mediation and/or hearing and decision
by Administrative Law Judge, with a right of
appeal to the Rent Board. (Added by Ord. 135-01,
File No. 010526, App. 7/6/2001; amended by Ord.
62-02, File No. 020343, App. 5/3/2002)

SEC. 41D.8. LIMITATION OF LIABILITY.

By adopting this Residential Hotel Visitor
Policy Ordinance, the City and County of San
Frtmcisco is assuming an undertaking only to
promote the general welfare. It is not assuming,
nor is it imposing on its officers and employees,
an obligation for breach of which it is liable in
money damages to any person v^ho claims that
such breach proximately caused injury. (Added
by Ord. 135-01, File No. 010526, App. 7/6/2001)

Supp. No. 11, September/October 2007

Sec. 41D.9. San Francisco - Administrative Code 3938

SEC. 41D.9. SEVERABILITY.

If any provision, subdivision, section, para-
graph, phrase or clause of this Chapter or the
apphcation thereof is for any reason held to be
invalid or unconstitutional by a court of compe-
tent jurisdiction, such decision shall not affect
the validity of the remainder of this Chapter. The
remainder of this Chapter shall remain effective
and enforceable to the fullest extent allowed by
law. All clauses and provisions of this Chapter
are hereby declared to be severable. (Added by
Ord. 135-01, File No. 010526, App. 7/6/2001)

[The next page is 3949] Supp. No. 11, September/October 2007

CHAPTER 41E. RESIDENTIAL HOTEL MAIL RECEPTACLE ORDINANCE

Sec. 41E.1. Title.

Sec. 41E.2. Findings.

Sec. 41E.3. Mailboxes for Permanent

Residents of Residential Hotels.

Sec. 41E.4. Petitions by Permanent

Residents for Violation of this
Chapter.

Sec. 4 IE. 5. Limitation of Liability.

SEC. 41E.1. TITLE.

This Chapter shall be known as the Residen-
tial Hotel Mail Receptacle Ordinance. For pur-
poses of this Chapter, the terms "owner," "per-
manent resident," "residential hotel," and
"residential unit" shall have the same meaning
as those set forth in Administrative Code Sec-
tions 41.4(m), (n), (p), and (q), respectively. (Added
by Ord. 73-06, File No. 060188, App. 4/20/2006)

SEC. 41E.2. FINDINGS.

The Board of Supervisors finds that:

(a) The high cost of housing in San Fran-
cisco makes residential hotels the only perma-
nently affordable housing option for many se-
niors, immigrants, families, and individuals on
low or fixed incomes.

(b) The City and County of San Francisco
has recognized the essential role of residential
hotels and has utilized them as a valuable re-
source to permanently house more than 1,300
formerly homeless people in the City's Master
Lease Program, which has become a national
model for permanent supportive housing and an
important part of finding a solution to the prob-
lem of homelessness.

(c) If there are no individual mail recep-
tacles at a residential hotel, the United States
Postal Service makes a "central delivery," where
all mail is dropped in a bag at the front desk and
distributed by desk clerks.

(d) Desk clerks are low-paid, under- trained,
and overburdened with the extra responsibility
of handling mail that adds time and difficulty to
their jobs, resulting in mail frequently being lost,
misplaced, or accidentally given to the wrong
person. In addition, mail is not forwarded to a
tenant at their new address when they move out
of a residential hotel,

(e) This lack of services creates an undue
burden for the tenants of residential hotels. Lost
or delayed mail has resulted in residential hotel
tenants having been bumped to the back of the
Section 8 list after years of waiting, or losing out
on other essential services because of missed
appointments. Many tenants must receive SSI,
Veterans Disability, or paychecks on time in
order to pay their rent for the month. Tenants
who move must return to their old address
regularly and attempt to collect mail rather than
have it forwarded to their new address as the
Postal Service does for apartment houses.

(f) Mail security and privacy are high pri-
orities for the tenants of residential hotels. At
the Central City SRO Collaborative tenant con-
vention, attended by 300 tenants from more than
100 San Francisco residential hotels, problems
with mail distribution in the hotels ranked as
one of the most pressing issues for the tenants
surveyed.

(g) Many tenants of residential hotels have
been homeless before and are understandably
afraid that lost or misplaced mail could result in
homelessness again.

(h) While a number of non-profit owned or
managed residential hotels have installed in
their lobbies mail receptacles for permanent resi-
dents that meet United States Postal Service
specifications, other residential hotels have not.
(Added by Ord. 73-06, File No. 060188, App.
4/20/2006)

3949

Supp. No. 1, September 2006

Sec. 41E.3.

San Francisco - Administrative Code

3950

SEC. 41E.3. MAILBOXES FOR
PERMANENT RESIDENTS OF
RESIDENTIAL HOTELS.

(a) Within one year of the effective date of
this Chapter, the owner of a residential hotel
shall install an individual mail receptacle for
each residential unit. The mail receptacle shall
be for receipt of mail delivered by the United
States Postal Service to a permanent resident of
the hotel. The hotel owner is responsible for
making arrangements with the United States
Postal Service for the installation of these recep-
tacles and delivery of mail thereto. Installation
and maintenance of the mail receptacles shall
meet all of the specifications and requirements of
the United States Postal Service. (Added by Ord.
73-06, File No. 060188, App. 4/20/2006)

SEC. 41E.4. PETITIONS BY
PERMANENT RESIDENTS FOR
VIOLATION OF THIS CHAPTER.

(a) A current or former permanent resident
of a residential hotel who believes that the hotel
has not acted in compliance with the provisions
of this Chapter 4 IE may petition the Rent Board
for a reduction in rent.

(b) Upon a finding of violation following a
hearing, the Rent Board may order a reduction of
rent for the aggrieved current or former resident.

(c) The Rent Board may promulgate Rules
and Regulations for the mediation and arbitra-
tion of such resident petitions, including provi-
sion for mediation and/or hearing and decision
by an Administrative Law Judge, with a right of
appeal to the Rent Board. (Added by Ord. 73-06,
File No. 060188, App. 4/20/2006)

person who claims that such breach proximately
caused injury. (Added by Ord. 73-06, File No.
060188, App. 4/20/2006)

SEC. 41E.5. LIMITATION OF LIABILITY.

By adopting this Residential Hotel Perma-
nent Resident Mail Receptacle Ordinance, the
City and County of San Francisco is assuming an
undertaking only to promote the general wel-
fare. It is not assuming, nor is it imposing on its
officers and employees, an obligation for breach
of which it is liable in money damages to any

[The next page is 3959]

Supp. No. 1, September 2006

CHAPTER 41F: TOURIST HOTEL CONVERSION*

Sec. 41F.1.
Sec. 41F.2.
Sec. 41F.3.
Sec. 41F.4.
Sec. 41F5.
Sec. 41F6.

Title.

Definitions.

Conversions Restricted.

Enforcement.

Sunset Provision.

Severability.

SEC. 41F.1. TITLE.

This Chapter may be referred to as the Tour-
ist Hotel Conversion Ordinance. (Added by Ord.
41-08, File No. 071528, App. 3/24/2008)

SEC. 41F.2. DEFINITIONS.

(a) "Baseline Inventory" shall mean an in-
ventory of the number of Large Tourist Hotel
Rooms commercially available for rent as of
March 1, 2009. The Planning Commission shall
adopt a Baseline Inventory reflecting the num-
ber of Large Tourist Hotel Rooms in the City as
of March 1, 2009, and shall update the Baseline
Inventory annually thereafter and no later than
March 15 of each year. The Planning Depart-
ment shall provide the public with an opportu-
nity for meaningful review and comment on the
Baseline Inventory and annual updates, includ-
ing a public hearing. Rooms created by new
Large Tourist Hotel Construction and/or expan-
sion shall qualify as additional Large Tourist
Hotel Rooms in the year they obtain final certifi-
cates of occupancy from the City, and shall be
added to the Baseline Inventory. Losses to the
City's Large Tourist Hotel inventory, including,
but not limited to, Conversions, shall be sub-
tracted from the Baseline Inventory.

(b) "Condominium Project" shall mean (i) a
Community Apartment as defined in Section
1308(b) of the Subdivision Code; (ii) a Condo-

minium as defined in Section 1308(c) of the
Subdivision Code; (iii) a Stock Cooperative as
defined in Section 1308(f) of the Subdivision
Code; or (iv) any other subdivided interest in
land.

(c) "Convert" shall mean: (i) to change the
t3rpie of ownership of any real property to that
defined as a Condominium Project and in which
two or more units are newly created wholly or in
substantial part within the existing structure of
a Large Tourist Hotel, regardless of whether
substantial improvements have been made to
such structures; or (ii) to change one or more
guest rooms, one or more suites of rooms, or any
portion thereof within an existing Large Tourist
Hotel.

(d) "Dwelling Unit" shall mean any build-
ing or portion thereof that contains living facili-
ties, including provisions for sleeping, eating,
cooking, and sanitation as required by the Hous-
ing Code, for not more than one Family.

(e) "Family" shgdl mean one or more per-
sons, related or unrelated, living together as a
single integrated household in a dwelling unit.

(f) "Large Tourist Hotel" shall mean any
building in the City containing 100 or more guest
rooms or suites of rooms intended or designated
to be used for commercial tourist use by provid-
ing accommodation to transient guests on a
nightly basis or longer, as contemplated by Sec-
tion 216(b) of the Planning Code. The definition
of Large Tourist Hotel shall include, for purposes
of this Chapter, a building (or set of buildings,
which shall mean buildings on the same lot,
adjacent lots, or within the same block and
owned by the same entity) which would have
qualified as a Large Tourist Hotel in any of the

^Editor's Note:

Ord. 41-08, File No. 071528, Approved March 24, 2008, repealed former Ch. 41F, in its entirety, and enacted
provisions designated as a new Ch. 41 F to read as herein set out. Prior to inclusion of said ordinance, Ch. 41 F
pertained to similar subject matter and derived from Ord. 214-05, File No. 051333, App. 8/18/2005 and Ord. 21-07,
File No. 061536, App. 2/9/2007.

3959

Supp. No. 15, March 2008

Sec. 41F.2.

San Francisco - Administrative Code

3960

five years preceding the application for Conver-
sion, A building (or set of buildings) shall not be
considered a Large Tourist Hotel if the total
number of rooms intended to be operated sepa-
rately for transient use is less than 100 rooms.

(g) "Large Tourist Hotel Room" shall mean
any guest room, suite of rooms, or any portion
thereof in a Large Tourist Hotel intended or
designated to be used for commercial tourist use
by providing accommodation to transient guests
on a nightly basis or longer, as contemplated by
Section 216(b) of the Planning Code.

(h) "Ancillary Hotel Area" shall mean any
area within a Large Tourist Hotel not defined as
a Large Tourist Hotel Room, including, but not
limited to, restaurant, retail, and parking areas.
(Added by Ord. 41-08, File No. 071528, App.
3/24/2008)

SEC. 41F.3. CONVERSIONS
RESTRICTED.

(a) General Prohibition. It shall be un-
lawful for any person to Convert any portion of a
Large Tourist Hotel except as provided in this
Chapter.

(b) Conversion prior to March 1, 2010.

Notwithstanding the foregoing restriction, the
Planning Commission may approve a total of up
to 550 Large Tourist Hotel Rooms to be Con-
verted prior to March 1, 2010. The Planning
Commission shall approve applications for Con-
versions under this section on a first-come first-
served basis. Applicants' place in the Conversion
queue shall be based upon the date the Planning
Department receives a complete application, as
detennined by the Zoning Administrator.

(c) Ancillary Hotel Areas. A person may
Convert all or any portion of an Ancillary Hotel
Area upon a showing that the Conversion shall
not result in a reduction in Large Tourist Hotel
Rooms in the subject hotel. Notwithstanding
Conversion approval under the Chapter, a Con-
version project must in addition obtain all appli-
cable City permits and approvals, including any
applicable conditional use authorization require-

ments. This Chapter shall not limit City discre-
tion to deny or approve with conditions a pro-
posed Conversion project.

(d) Conversion Lottery. Beginning in 20 10,
the Planning Department shall hold an annual
lottery for Conversion credits for Large Tourist
Hotel Rooms in accordance with the following:

( 1 ) The Planning Department shall hold the
lottery only if:

(i) The update to the Baseline Inventory
shows a net increase of at least 100 Large Tourist
Hotel Rooms during the previous Baseline Inven-
tory year. Large Tourist Hotel Rooms lost through
authorized conversions shall not be considered
for purposes of calculating the net increase in
Large Tourist Hotel Rooms under this section;
and

(ii) The number of existing Large Tourist
Hotel Rooms exceeds the March 2010 Baseline
Inventory by at least the number of Conversion
credits available in the proposed lottery pursu-
ant to subsection (d)(2), below.

(2) The number of Conversion credits avail-
able in each lottery shall equal the net increase
in Large Tourist Hotel Rooms during the previ-
ous Baseline Inventory year, not including Con-
versions authorized by lottery credits. Large
Tourist Hotel Rooms lost through authorized
Conversions shall not be considered for purposes
of calculating the net increase in Large Tourist
Hotel Rooms under this section.

(3) In order to participate in the conversion
credit lottery, applicants must submit a Section
41F.3(f)(2) application within 15 business days of
the formal adoption of the Baseline Inventory
update. The Planning Department shall issue
one lottery ticket per Large Tourist Hotel appli-
cant. Only one application may be submitted per
Large Tourist Hotel.

(4) The Planning Department shall hold the
lottery at a public hearing within 6 weeks of the
formal adoption of the Baseline Inventory up-
date. Winning lottery tickets shall be chosen
randomly, one at a time. If not enough credits
remain in the pool to satisfy a winning ticket,
then the applicant shall receive the number of
credits remaining in the pool and receive the

Supp. No. 15, March 2008

3961

Tourist Hotel Conversion

Sec. 41F.3.

remainder as the first applicant on the standby
list. If a lottery would otherwise be required by
the Chapter and the number of available credits
exceeds the total number of applicants' requests
for Conversion credits in a particular year, then
the credits shall be granted and no lottery shall
take place.

(5) If applicants collectively seek more Con-
version credits than are available in the lottery
pool, then, after the last winning ticket is drawn,
the Planning Department shall draw a reason-
able number of alternate tickets for inclusion in
a standby list. If, nine months after the lottery,
the Planning Department revokes winning cred-
its according to subsection (e)(2), below, the cred-
its shall be reallocated to the standby list, in the
order drawn.

(e) Conversion Credits.

(1) Except as provided in Sections 41F.3(b)
or (c). Conversion is prohibited unless the appli-
cant uses Conversion credits to offset the loss of
Large Tourist Hotel Rooms. A lottery award of
Large Tourist Hotel Conversion credits does not
grant the credit-holder a right to development or
otherwise limit City discretion to deny or ap-
prove with conditions a proposed Conversion
project. A credit holder must still obtain all
otherwise applicable City permits and approv-
als, including but not limited to Planning Com-
mission approval of the Conversion pursuant to
Section 41F.3(f).

(2) Credits are building-specific and non-
transferable, except that if the credit holder does
not make diligent and good faith efforts within
nine months of the lottery in support of Conver-
sion, the credits will be revoked and reallocated
to the standby list. Credits shall permanently
expire if the applicant or standby-list recipient
fails to diligently and in good faith pursue Con-
version for any 12 consecutive months.

(f) Conversion Process.

(1) The notice and hearing requirements
applicable to conditional use authorizations shall
apply to all Planning Commission decisions un-
der this Chapter.

(2) Any party seeking Conversion under this
Chapter shall submit a written Conversion ap-
plication to the Planning Department contain-
ing, at minimum, the following information:

(i) The name and address of the building in
which the conversions are proposed:

(ii) The names and addresses of all owners
and operators of said building:

(iii) A description of the proposed Conver-
sion including the nature of the Conversion, the
total number of Large Tourist Hotel Rooms prior
to and following Conversion, a description of the
area and/or rooms to be Converted, including
floor number and location, and the estimated
total number of Condominium Units to be cre-
ated:

(iv) Preliminary drawings showing the ex-
isting floor plans and proposed floor plans:

(v) A description of the improveraents or
changes proposed to be constructed or installed
and the tentative schedule for start of construc-
tion:

(vi) Information specifying any changes to
the subject building or buildings' inventory of
rooms in the 5 yeeirs preceding the date of
application for Conversion:

(vii) The average rental rates of the rooms
to be converted, calculated over the calendar
year preceding the year of application for Con-
version:

(viii) Applicants for the lottery must pro-
vide information demonstrating that the Conver-
sion will not reduce the supply of Large Tourist
Hotel Rooms based upon the most recent Base-
line Inventory.

(ix) Applicants for Ancillary Hotel Area Con-
version must provide information demonstrating
that the proposed Conversion will not result in
loss of Large Tourist Hotel Rooms in the subject
Large Tourist Hotel, including specifi/ing any
proposed changes to the subject buildings' inven-
tory of rooms planned in the 5 years following
the date of application for Conversion.

(x) Applicants for Conversion must pay the
Planning Department a processing fee set by the
Planning Director at a full cost recovery level.

Supp. No. 15, March 2008

Sec. 41R3.

San Francisco - Administrative Code

3962

(3) The Zoning Administrator shall make a
recommendation regarding the approval, denial,
or approval with conditions of the Conversion
application to the Planning Commission, based
upon whether the proposed Conversion meets
Planning Code requirements including, but not
limited to, this Chapter. The Planning Commis-
sion shall approve the Conversion, deny it, or
approve it with conditions. Any member of the
public wishing to appeal the decision of the
Planning Commission must appeal the decision
to the Board of Supervisors pursuant to the
appeals process set forth in Section 308 of the
Planning Code. (Added by Ord. 41-08, File No.
071528, App. 3/24/2008)

SEC. 41F.4. ENFORCEMENT.

(a) The Department of Building Inspection,
in consultation with the Departments of Plan-
ning and Public Works, shall be responsible for
enforcement of this Chapter as it may relate to
physical alterations to a Large Tourist Hotel and
may take any appropriate action within its pow-
ers to enforce this Chapter, including, but not
limited to, denial of any building, construction,
or change of use permits. The Department of
Public Works, in consultation with the Depart-
ments of Building Inspection and Planning, shall
be responsible for enforcement of this Chapter as
it may relate to actions involving a subdivision
under the Subdivision Map Act, California Gov-
ernment Code sections 66410 et seq.

(b) Civil Penalties.

(1) The Department of Building Inspection
or the Department of Public Works may recom-
mend to the City Attorney initiation of a civil
action hereunder. The City Attorney shall have
the power to bring an action for injunctive relief
to restrain or summary abatement to cause the
correction or abatement of the violation of this
article and for assessment and recovery of a civil
penalty and reasonable attorney's fees for such
violation, or other judicial relief hereunder.

(2) Any person who violates this Article
may be liable for a civil penalty, not to exceed
$500.00 per room for each day such violation is
committed or permitted to continue, which pen-

alty shall be assessed and recovered in a civil
action brought in the name of the people of the
City by the City Attorney in any court of compe-
tent jurisdiction. The City Attorney also may
seek recovery of the attorney's fees and costs
incurred in bringing a civil action pursuant to
this Section.

(1) The Department of Building Inspection
or the Department of Public Works may recom-
mend to the District Attorney initiation of a
criminal action hereunder.

(2) Any person who violates this Article
shall be deemed guilty of a misdemeanor. Every
violation determined to be a misdemeanor is
punishable by a fine of not more than $1,000 or
by imprisonment in the County Jail for a period
of not more than six months, or by both such
fines or imprisonments. (Added by Ord. 41-08,
File No. 071528, App. 3/24/2008)

SEC. 41F.5. SUNSET PROVISION.

This Chapter shall automatically expire by
operation of law 120 months after its initial
effective date unless the Board of Supervisors,
on or before that date, extends or re-enacts it.
The City Attorney shall cause the Chapter to be
removed from future editions of the Code. (Added
by Ord. 41-08, File No. 071528, App. 3/24/2008)

SEC. 41F.6. SEVERABILITY.

In the event that a Court or agency of com-
petent jurisdiction holds that a Federal or State
law, rule or regulation invalidates any clause,
sentence, paragraph or section of this ordinance
or the application thereof to any person or cir-
cumstances, it is the intent of the Board of
Supervisors that the court or agency sever such
clause, sentence, paragraph or section so that
the remainder of this ordinance shall remain in
effect. (Added by Ord. 41-08, File No. 071528,
App. 3/24/2008)

[The next page is 3967]

Supp. No. 15, March 2008

CHAPTER 42: INDUSTRIAL DEVELOPMENT AUTHORITY

Sec. 42.1. Created Under Provisions of

State Law.
Sec. 42.2. Definitions.

Sec. 42.3. Governing Body; Name.

Sec. 42.4. Selection of Board.

Sec. 42.5. Terms of Office.

Sec. 42.6. Chairperson of Board.

Sec. 42.7. Organizational Meeting.

Sec. 42.8. Powers and Limitations of

Authority.
Sec. 42.9. Officers, Employees and Agents.

Sec. 42.10. Secretary.
Sec. 42.11. Attorney.
Sec. 42.12. Oath of Office.
Sec. 42.13. Manner of Action by Authority.
Sec. 42.14. Quorum.
Sec. 42.15. Adoption of Resolution and

Motions by Majority Vote.
Sec. 42.16. Taking of Ayes and Noes, Entry

upon Minutes.
Sec. 42.17. Signing of Resolutions;

Attestation.

Sec. 42.18. Establishment of Rules.

Sec. 42.19. Administration of Oath and

Affirmations.
Sec. 42.20. Duties of Chairperson.
Sec. 42.21. Duties of Secretary.

Sec. 42.22. Quarterly Reports to Board of
Supervisors.

SEC. 42.1. CREATED UNDER
PROVISIONS OF STATE LAW.

There is need for a public corporation to be
known as the Industrial Development Authority
of the City and County of San Francisco, to
function in the City and County under the pro-
visions of the California Industrial Development
Financing Act, Title 10 (commencing with Sec-
tion 91500) of the Government Code.

An Industrial Development Authority shall
be created and constituted at the same time and

in the same manner prescribed by the California
Industrial Development Financing Act of said
code. (Added by Ord. 595-80, App. 12/26/80)

SEC. 42.2. DEFINITIONS.

Unless the context otherwise requires, the
definitions in this section shall govern the con-
struction of this chapter, as follows:

(a) "Act" means the California Industrial
Development Financing Act, Title 10 (commenc-
ing with Section 91500) of Government Code.

(b) "Authority" means the Industrial Devel-
opment Authority of the City and County of San
Francisco.

(d) "Officer" means the Chairperson and
members of the Board, a secretary, a treasurer,
and such assistants for the secretary and the
treasurer as the Board may appoint. (Added by
Ord. 595-80, App. 12/26/80)

SEC. 42.3. GOVERNING BODY; NAME.

There shall be a five member board which
shall be known as the "Industrial Development
Authority of the Citj^ and County of San Fran-
cisco Board of Directors." (Added by Ord. 595-80,
App. 12/26/80)

SEC. 42.4. SELECTION OF BOARD.

For purposes of selecting original members of
the Board and each replacement to the Board as
may be required from time to time, the Mayor
shaill present to the Board of Supervisors of the
City and County of San Francisco the name of
one person for each vacancy of the Board for
consideration for appointment to the Board by
the Board of Supervisors. The Board of Supervi-
sors, alone, shall officially appoint members of
the Board. (Added by Ord. 595-80, App. 12/26/80)

3967

Sec. 42.5.

San Francisco - Administrative Code

3968

SEC. 42.5. TERMS OF OFFICE.

At the time of the appointment of the first
directors, the Board of Supervisors shall divide
the directors into three groups containing as
nearly equal whole numbers as possible. The
first term of the directors included in the first
group shall be approximately one year; the first
term of the directors in the second group shall be
approximately two years; the first term of the
directors included in the third group shall be
approximately three years, as determined by the
Board of Supervisors, and thereafter the terms of
all directors shall be three years. Directors shall
be eligible for reappointment for an unlimited
number of terms. (Added by Ord. 595-80, App.
12/26/80)

SEC. 42.6. CHAIRPERSON OF BOARD.

The authority shall have a chairperson of its
board who shall be elected by the members of the
Board from among its membership. (Added by
Ord. 595-80, App. 12/26/80)

SEC. 42.7. ORGANIZATIONAL
MEETING.

Within 90 days after the effective date of this
ordinance, the Board shall meet and organize as
a board of the authority (Added by Ord. 595-80,
App. 12/26/80)

SEC. 42.8. POWERS AND LIMITATIONS
OF AUTHORITY.

The authority shall exercise all powers, and
be subject to all limitations, prescribed in the
Act. Direct and indirect expenses of operation of
the authority shall be paid exclusively from
proceeds of bonds issued pursuant to the Act and
this ordinance, or from fees charged by the
authority for applications and other filings. (Added
by Ord. 595-80, App. 12/26/80)

SEC. 42.9. OFFICERS, EMPLOYEES AND
AGENTS.

The authority may appoint officers, employ-
ees, and agents as prescribed in the Act and not
otherwise inconsistent with this chapter. (Added
by Ord. 595-80, App. 12/26/80)

SEC. 42.10. SECRETARY.

The authority shall appoint a secretary. (Added
by Ord. 595-80, App. 12/26/80)

SEC. 42.11. ATTORNEY.

The City Attorney of the City and County of
San Francisco shall serve as attorney to the
authority (Added by Ord. 595-80, App. 12/26/80)

SEC. 42.12. OATH OF OFFICE.

Each officer of the authority before entering
upon the duties of office shall take and subscribe
to the official oath and file it with the secretary of
the authority. The oath of office may be before
the secretary, any member of the authority, or
any officer authorized by law to administer oaths.
(Added by Ord. 595-80, App. 12/26/80)

SEC. 42.13. MANNER OF ACTION BY
AUTHORITY.

The authority shall act in the manner and be
subject to the Charter of the City and County of
San Francisco and ordinances enacted thereto.
(Added by Ord. 595-80, App. 12/26/80)

SEC. 42.14. QUORUM.

A majority of the Board shall constitute a
quorum for the transaction of business. (Added
by Ord. 595-80, App. 12/26/80)

SEC. 42.15. ADOPTION OF
RESOLUTION AND MOTIONS BY
MAJORITY VOTE.

No resolution or motion shall be passed or
become effective without the affirmative votes of
at least a majority of the members of the Board.
(Added by Ord. 595-80, App. 12/26/80)

SEC. 42.16. TAKING OF AYES AND
NOES, ENTRY UPON MINUTES.

The ayes and noes shall be taken upon the
passage of all resolutions or motions and entered
upon the minutes of the Board. (Added by Ord.
595-80, App. 12/26/80)

3969 Industrial Development Authority Sec. 42.22.

SEC. 42.17. SIGNING OF RESOLUTIONS; the annual budget of the City and County of San
ATTESTATION. Francisco. (Added by Ord. 595-80, App. 12/26/80)

All resolutions shall be signed by the Chair-
person and attested by the Secretary. (Added by
Ord. 595-80, App. 12/26/80)

SEC. 42.18. ESTABLISHMENT OF
RULES.

Except for any applicable provisions of the
Act prescribing rules for the proceedings of the
authority, the authority shall establish rules for
its proceedings. The authority shall submit to
the Board of Supervisors for approval guidelines
and priority businesses and types of facilities to
be provided financing under this ordinance. (Added
by Ord. 595-80, App. 12/26/80)

SEC. 42.19. ADMINISTRATION OF
OATHS AND AFFIRMATIONS.

Each member of the Board, or the Secretary,
may administer oaths and affirmations in con-
nection with the taking of testimony at any
hearing, investigation, or other matters pending
before the authority. (Added by Ord. 595-80, App.
12/26/80)

SEC. 42.20. DUTIES OF CHAIRPERSON.

The Chairperson shall: (a) sign all contracts
on behalf of the authority; (b) perform other
duties imposed by the Board. (Added by Ord.
595-80, App. 12/26/80)

SEC. 42.21. DUTIES OF SECRETARY.

The Secretary shall: (a) Countersign all con-
tracts on behalf of the authority; (b) perform
other duties imposed by the Board. (Added by
Ord. 595-80, App. 12/26/80)

SEC. 42.22. QUARTERLY REPORTS TO
BOARD OF SUPERVISORS.

The authority shall file with the Board of
Supervisors at quarterly intervals a detailed
report of all its transactions, including a state-
ment of all revenues and expenditures. The
budget of the authority shall be transmitted to
the Board of Supervisors and approved annually
by the Board of Supervisors in conjunction with

[The next page is 3979]

San Francisco - Administrative Code

[INTENTIONALLY LEFT BLANK]

CHAPTER 43: MUNICIPAL FINANCE LAW

Article Page

I. RESIDENTIAL MORTGAGE REVENUE BOND LAW 3981

IL ECONOMIC DEVELOPMENT BOND LAW 3995

III. AFFORDABLE HOUSING AND HOME OWNERSHIP BOND PROGRAM. 4011

IV. PUBLIC UTILITIES COMMISSION ENTERPRISE REVENUE BOND

ELECTION PROCEDURE 4023

V. PUBLIC UTILITIES COMMISSION SHORT-TERM INDEBTEDNESS. . 4033

VI. SAN FRANCISCO REFUNDING REVENUE BOND ACT 4043

VIL SAN FRANCISCO BOND FACILITATION ACT 4051

VIH. REFUNDING BOND SAVINGS TEST ACT 4061

IX. HOUSING BOND APPROVAL POLICY 4063

3979 Supp. No. 5, February 2007

[INTENTIONALLY LEFT BLANK]

Supp. No. 5, February 2007

ARTICLE I: RESIDENTIAL MORTGAGE REVENUE BOND LAW

Title 1 - General Provisions And

Definitions

Sec.

43.1.1.

Title.

Sec.

43.1.2.

Purpose.

Sec.

43.1.3.

Full Authority.

Sec.

43.1.4.

Additional Authority.

Sec.

43.1.5.

Definitions.

Sec.

43.1.6.

No Limitation on
Appropriations .

Titles

5 - Financing Residences

Sec.

43.1.7.

Loans for Residences.

Sec.

43.1.8.

Acquisition, Construction,
Leasing and Selling of
Residences.

Sec.

43.1.9.

Fees.

Sec.

43.1.10.

Insurance.

Sec.

43.1.11.

Rents and Charges.

Sec.

43.1.12.

Security for Loans.

Sec.

43.1.13.

Professional Services.

Sec.

43.1.14.

Equal Opportunity.

Sec.

43.1.15.

Public Works Requirements
Inapplicable.

Sec.

43.1.16.

Regulations.

Sec.

43.1.17.

Additional Powers.
Title 3 - Bonds

Sec.

43.1.18.

Issuance of Bonds.

Sec.

43.1.19.

Bonds Not Debt of City

Sec.

43.1.20.

Cost of Issuance; Reserve
Funds; Capitalized Bond
Interest.

Sec.

43.1.21.

Resolution and Bond Terms.

Sec.

43.1.22.

Bond Provisions.

Sec.

43.1.23.

Pledge of Revenues, Money or
Assets; Lien.

Sec.

43.1.24.

No Personal Liability

Sec.

43.1.25.

Purchase of Bonds by City.

Sec.

43.1.26.

Refunding Bonds.

Sec. 43.1.27. Validity of Bonds.

Title 4 - Supplemental Provisions

Sec. 43.1.28. Liberal Construction.

Sec. 43.1.29. Omissions Not to Affect Vahdity

of Bonds.
Sec. 43.1.30. Article Controlling.
Sec. 43.1.31. Severability

TITLE 1 - GENERAL PROVCSIONS AND
DEFINITIONS

SEC. 43.1.1. TITLE.

This Article may be cited as the Residential
Mortgage Revenue Bond Law. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.1.2. PURPOSE.

The Board of Supervisors hereby finds and
declares that it is necessary, essential, a public
pui^pose and a municipal affair for the City and
County to make, purchase and contract for the
making of below-market-interest-rate loans for
the purpose of providing mortgage financing for
the acquisition, construction, or rehabilitation of
housing in the City and County to encourage the
availability of adequate housing and home fi-
nance for persons and families, including those
of low or moderate income, and to develop viable
communities by providing decent housing and an
enhanced living environment.

The City and County can promote such inter-
ests pursuant to this Article without adversely
affecting areas outside the City and County and
without conflicting with efforts by the State of
California to solve problems of statewide con-
cern. (Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.1.3. FULL AUTHORITY.

This Article is full authority for the issuance
of bonds by the City and County for the purposes
specified herein. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

3981

Sec. 43.1.4.

San Francisco - Administrative Code

3982

SEC. 43.1.4. ADDITIONAL AUTHORITY.

The purposes authorized hereby may be ef-
fectuated and bonds may be issued for any such
purposes under this Article notwithstanding that
any other law may provide for such purposes or
for the issuance of bonds for like purposes and
without regard to the requirements, restrictions,
limitations or other provisions contained in any
other law. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

SEC. 43.1.5. DEFINITIONS.

Unless the context otherwise requires, the
terms defined in this Article shall have the
following meanings:

(a) "Board of Supervisors" means the Board
of Supervisors of the City and County of San
Francisco.

(b) "Bonds" means any bonds, notes, certifi-
cates, debentures or other obligations issued by
the City and County pursuant to this Article and
payable as provided in this Article.

(d) "Cost" means the total of all costs in-
curred by or on behalf of a participating party to
carry out all works and undertakings and to
obtain all rights and powers necessary or inci-
dent to the acquisition, construction, or rehabili-
tation of a residence. "Cost" may include all costs
of issuance of bonds for such purposes and costs
for construction undertaken by a participating
party as its own contractor.

(e) "Participating party" means any indi-
vidual, association, corporation, partnership or
other entity which is approved by the City and
County to undertake the financing of the costs of
a residence pursuant to this Article.

(f) "Residence" means real property im-
proved with a residential structure. "Residence"
includes condominium and cooperative dwelling
units, real property improved with single-family
residential structures, and real property im-
proved with multi-family residential structures.

(g) "Revenues" means amounts received by
the City and County as pajnnents of principal,
interest, and all other charges with respect to a
loan under this Article; as pajnnents under a
lease, sublease or sale agreement with respect to
a residence; as proceeds received by the City and
County from mortgage, hazard or other insur-
ance on or with respect to such a loan (or any
property securing such loan), lease, sublease or
sale agreement, all other rents, charges, fees,
income and receipts derived by the City and
County from the financing of a residence under
this Article; any amounts received by the City
and County as investment earnings on moneys
deposited in any fund securing bonds and such
other legally available moneys as the Board of
Supervisors may, in its discretion, lawfully des-
ignate as revenues, resolution, or any indenture
authorized by such resolution to be entered into
by the City and County (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

SEC. 43.1.6. NO LIMITATION ON
APPROPRIATIONS.

None of the Revenues, as defined by this
Article, shall be taken into account in any man-
ner in determining the City and County's com-
pliance with Article XIIIB of the California Con-
stitution. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

TITLE 2 - FINANCING RESIDENCES

SEC. 43.1.7. LOANS FOR RESIDENCES.

The City and County may use the proceeds of
bonds to make, purchase, or otherwise contract
for the making of, a mortgage or other secured or
unsecured loan, upon such terms and conditions
as the City and County shall deem proper, to any
participating party for the costs of a residence.
(Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

3983

Municipal Finance Law - Residential Mortgage Revenue Bond Law Sec. 43.1.14.

SEC. 43.1.8. ACQUISITION,
CONSTRUCTION, LEASING AND
SELLING OF RESIDENCES.

The City and County may use the proceeds of
bonds, or other moneys provided by or on behalf
of a participating party, to acquire, construct,
enlarge, remodel, renovate, alter, improve, fur-
nish, equip and lease as lessee a residence solely
for the purpose of selling or leasing as lessor
such residence to such participating party, and
may contract with such participating party to
undertake on behalf of the City and County to
construct, enlarge, remodel, renovate, alter, im-
prove, furnish and equip such residence.

The City and County may sell or lease, upon
such terms and conditions as the City and County
shall deem proper, to a participating party any
residence owned by the City and County under
this Article, including a residence conveyed to
the City and County in connection with a financ-
ing under this Article but not being financed
hereunder. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

SEC. 43.1.9. FEES.

The City and County may charge participat-
ing parties application, commitment, financing
and other fees, in order to recover all adminis-
trative and other costs and expenses incurred in
the exercise of the powers and duties conferred
by this Article. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.1.10. INSURANCE.

The City and County may obtain, or, aid in
obtaining, from any department or agency of the
United States or of the State of California or any
private company, any insurance or guarantee as
to, or of, or for the payment or repayment of,
interest or principal, or both, or any part thereof,
on any loan, lease or sale obligation or any
instrument evidencing or securing the same,
made or entered into pursuant to the provisions
of this Article; and may accept payment in such
manner and form as provided therein in the
event of default by a participating party, and

may assign any such insurance or guarantee as
security for bonds. (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000)

SEC. 43.1.11. RENTS AND CHARGES.

The City and County may fix rents, pay-
ments, fees, charges and interest rates for financ-
ing under this Article and may agree to revise
from time to time such rents, pa3rments, fees,
charges and interest rates to reflect changes in
interest rates on bonds, losses due to defaults or
changes in other expenses related to this Article,
including City and County administrative ex-
penses. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

SEC. 43.1.12. SECURITY FOR LOANS.

The City and County may hold deeds of trust
or mortgages or security interests in personal
property as security for loans under this Article
and may pledge or assign the Scime as security
for repayment of bonds. Such deeds of trust,
mortgages or security interests, or any other
interest of the City and County in any residence,
may be assigned to, and held on behalf of the
City and County by any bank or trust company
appointed to act as trustee by the City and
County in any resolution or indenture providing
for the issuance of bonds. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

SEC. 43.1.13.
SERVICES.

PROFESSION.\L

The City and County may contract for such
en^jineering, architectural, financial, accounting,
legal or other professional services as may be
necessary in the judginent of the City and County
for the purposes of this Article. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.1.14. EQUAL OPPORTUNITY.

The City and County shall require that con-
tractors and subcontractors engaged in the con-
struction of facilities financed under this Article
shall provide equal opportunity for employment,
without discrimination as to race, marital sta-

Sec. 43.1.14.

San Francisco - Administrative Code

3984

tus, sex, color, religion, national origin or ances-
try. (Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.1.15. PUBLIC WORKS
REQUIREMENTS INAPPLICABLE.

Except as specifically provided in this Article,
the acquisition, construction, or rehabilitation of
a residence financed under this Article shall not
be subject to any requirements relating to build-
ings, works or improvements owned or operated
by the City and County, and any requirement of
public competitive bidding or other procedural
restriction imposed on the award of contracts for
acquisition or construction of a City and County
building, work or improvement or to the lease,
sublease, sale or other disposition of City and
County property shall not be applicable to any
action taken under this Article. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.1.16. REGULATIONS.

The Mayor of the City and County, or a
person designated by the Mayor, shall prepare
and submit to the Board of Supervisors for
approval, rules or regulations, or both, permitted
under this Article. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.1.17. ADDITIONAL POWERS.

In addition to all other powers specifically
granted by this Article, the City and County may
do all things necessary or convenient to carry out
the purposes of this Article, provided, however,
that the City and County shall not have the
power to operate a residence financed under this
Article as a business, except temporarily in the
case of a default by a participating party. (Added
by Ord. 12-00, File No. 992117, App. 2/11/2000)

TITLE 3 ■ BONDS

SEC. 43.1.18. ISSUANCE OF BONDS.

The City and County may, from time to time,
issue bonds for any of the purposes specified in
Sections 142(d) and 143 of the Internal Revenue
Code of 1986. Bonds shall be negotiable instru-

ments for all purposes, subject only to the provi-
sions of such bonds for registration. (Added by
Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.1.19. BONDS NOT DEBT OF
CITY.

Every issue of bonds shall be a limited obli-
gation of the City and County payable from all or
any specified part of the revenues and the mon-
eys and assets authorized in this Article to be
pledged or assigned to secure pajonent of bonds.
Such revenues, moneys or assets shall be the
sole source of repa3mient of such issue of bonds.
Bonds issued under the provisions of this Article
shall not be deemed to constitute a debt or
liability of the City and County or a pledge of the
faith and credit of the City and County but shall
be payable solely from specified revenues, mon-
eys, and assets. The issuance of bonds shall not
directly, indirectly, or contingently obligate the
City and County to levy or pledge any form of
taxation or to make any appropriation for their
payment.

All bonds shall contain on the face thereof a
statement to the following effect: Neither the
faith and credit nor the taxing power of the City
and County is pledged to the pajmient of the
principal of or premium or interest on this bond.
(Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.1.20. COST OF ISSUANCE;
RESERVE FUNDS; CAPITALIZED BOND
INTEREST.

In determining the amount of bonds to be
issued, the City and County may include all costs
of the issuance of such bonds, reserve funds and
capitalized bond interest. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

SEC. 43.1.21. RESOLUTION AND BOND
TERMS.

Bonds may be issued as serial bonds, term
bonds, installment bonds or pass-through certifi-
cates or any combination thereof. Bonds shall be
authorized by resolution of the Board of Super-
visors and shall bear such date or dates; mature
at such time or times; bear interest at such fixed

3985 Municipal Finance Law - Residential Mortgage Revenue Bond Law Sec. 43.1.24.

or variable rate or rates; be payable at such time
or times; be in such denominations, be in such
form, either coupon or registered, carry such
registration privileges, be executed in such man-
ner, be payable in lawful money of the United
States of America at such place or places, be
subject to such terms of redemption and have
such other terms and conditions as such resolu-
tion, or any indenture authorized by such reso-
lution to be entered into by tile City and County,
may provide. Bonds may be sold at either public
or private sale and for such prices as the City
and County shall determine. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.1.22. BOND PROVISIONS.

Any resolution authorizing any bonds or any
issue of bonds, or any indenture authorized by
such resolution to be entered into by the City and
County, may contain provisions respecting any of
the following terms and conditions, which shall
be a part of the contract with the holders of such
bonds:

(a) The terms, conditions and form of such
bonds and the interest and principal to be paid
thereon;

(b) Limitations on the uses and purposes to
which the proceeds of sale of such bonds may be
applied, and the pledge or assignment of such
proceeds to secure the payment of such bonds;

(c) Limitations on the issuance of additional
parity bonds, the terms upon which additional
parity bonds may be issued and secured, and the
refunding of outstanding bonds;

(d) The setting aside of reserves, sinking
funds and other funds and the regulation and
disposition thereof;

(e) The pledge or assignment of all or any
part of the revenues and of any other moneys or
assets legally available therefor and the use and
disposition of such revenues, moneys and assets;

(f) Limitation on the use of revenues for
operating, administration or other expenses of
the City and County;

(g) Specification of the acts or omissions to
act which shall constitute a default in the duties
of the City and County to holders of such bonds.

and providing the rights and remedies of such
holders in the event of default, including any
limitations on the right of action by individual
bondholders;

(h) The appointment of a corporate trustee
to act on behalf of the City and County and the
holders of its bonds, the pledge or assignment of
loans, deeds of trust, mortgages, leases, sub-
leases, sale contracts and any other contracts to
such trustee, and the rights of such trustee;

(i) The procedure, if any, by which the terms
of any contract with bondholders may be cimended
or abrogated, the amount of such bonds the
holders of which must consent thereto, and the
manner in which such consent may be given; and

(j) Any other provisions which the Board of
Supervisors may deem reasonable and proper for
the purposes of this Article and the security of
the bondholders. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.1.23. PLEDGE OF REVENUES,
MONEY OR ASSETS; LIEN.

Any pledge of revenues or other moneys or
assets pursuant to the provisions of this Article
shall be valid and binding from the time such
pledge is made. Revenues, monej^s and assets so
pledged and thereafter received by the City and
County shall immediately be subject to the lien
of such pledge without any physical delivery
thereof or further act; and the lien of any such
pledge shall be valid and binding as against all
parties having claims of any kind in tort, con-
tract, or otherwise against the City and County,
irrespective of whether such parties have notice
thereof. Neither the resolution nor any inden-
ture by which a pledge is created need be filed or
recorded except in the records of the City and
County (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

SEC. 43.1.24. NO PERSONAL LIAI5ILITY.

Neither the members of the Board of Super-
visors, the officers or employees of the City and
County, nor any person executing any bonds
shall be liable personally on the bonds or be

Sec. 43.1.24.

San Francisco - Administrative Code

3986

subject to any personal liability or accountability
by reason of the issuance thereof. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.1.25. PURCHASE OF BONDS BY
CITY.

The City and County shall have the power
out of any funds available therefor to purchase
its bonds. The City and County may hold, pledge,
cancel, or resell such bonds, subject to and in
accordance with agreements with the bondhold-
ers. (Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.1.26. REFUNDING BONDS.

The City and County may issue bonds under
this Article for the purpose of refunding any
bonds then outstanding. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000; amended by
Ord. 212-00, File No. 001331, App. 9/1/2000)

SEC. 43.1.27. VALIDITY OF BONDS.

The validity of the authorization and issu-
ance of any bonds is not dependent on and shall
not be affected in any way by any proceedings
taken by the City and County for the approval of
any financing or the entering into of any agree-
ment, or by the failure to provide financing or
enter into any agreement, for which bonds are
authorized to be issued under this Article. (Added
by Ord. 12-00, File No. 992117, App. 2/11/2000)

TITLE 4 - SUPPLEMENTAL PROVISIONS

SEC. 43.1.28. LIBERAL
CONSTRUCTION.

This Article, being necessary for the welfare
of the City and County and its inhabitants, shall
be liberally construed to effect its purposes.
(Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.1.29. OMISSIONS NOT TO
AFFECT VALIDITY OF BONDS.

Any omission of any officer or the City and
County in proceedings under this Article or any
other defect in the proceedings shall not invali-

date such proceedings or the bonds issued pur-
suant to this Article. (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000)

SEC. 43.1.30. ARTICLE CONTROLLING.

To the extent that the provisions of this
Article are inconsistent with the provisions of
any general statute or special act or parts thereof
the provisions of this Article shall be deemed
controlling. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

SEC. 43.1.31. SEVERABILITY.

If any provision of this Article or the applica-
tion thereof to any person or circumstance is held
invalid, such invalidity shall not affect any other
provision or application of this Article which can
be given effect without the invalid provision or
application; and to this end the provisions of this
Article are declared to be severable. The Board of
Supervisors hereby declares that it would have
adopted and passed this Article and each section,
subsection, sentence, clause, phrase and word
hereof, irrespective of the fact that any one or
more of the other sections, subsections, sen-
tences, clauses, phrases or words hereof be de-
clared invalid or unconstitutional. (Added by
Ord. 12-00, File No. 992117, App. 2/11/2000)

[The next page is 3995]

ARTICLE II: ECONOMIC DEVELOPMENT BOND LAW

Title I - General Provisions and
Definitions

Sec. 43.2.1. Title.
Sec. 43.2.2. Purpose.
Sec. 43.2.3. Full Authority.
Sec. 43.2.4. Additional Authority.
Sec. 43.2.5. Definitions.
Sec. 43.2.6. No Limitation on
Appropriations .

Title 2 - Financing Facilities

Sec. 43.2.7. Loans for Facilities.

Sec. 43.2.8. Acquisition, Construction,

Leasing and Selling of

Facilities.
Sec. 43.2.9. Applications for Approval.
Sec. 43.2.10. Fees.
Sec. 43.2.11. Insurance.
Sec. 43.2.12. Rents and Charges.
Sec. 43.2.13. Security for Loans.
Sec. 43.2.14. Professional Services.
Sec. 43.2.15. Public Works Requirements

Inapplicable.

Sec. 43.2.16. Additional Powers.

Title 3 - Bonds

Sec. 43.2.17. Issuance of Bonds.

Sec. 43.2.18. Bonds Not Debt of City

Sec. 43.2.19. Bond Terms.

Sec. 43.2.20. Bond Provisions.

Sec. 43.2.21. Pledge of Revenues, Money or

Assets; Lien.
Sec. 43.2.22. No Personal Liability
Sec. 43.2.23. Purchase of Bonds by City
Sec. 43.2.24. Refunding Bonds.
Sec. 43.2.25. Bond Anticipation Notes.
Sec. 43.2.26. Validity of Bonds.

Title 4 - Supplemental Provisions

Sec. 43.2.27. Liberal Construction.

Sec. 43.2.28. Omissions Not to Affect Validity

of Bonds.
Sec. 43.2.29. Article Controlling.
Sec. 43.2.30. Severability

TITLE 1 - GENERAL PROVESIONS AND
DEFINITIONS

SEC. 43.2.1. TITLE.

This Article may be cited as the Economic
Development Revenue Bond Law of the City and
County of San Francisco. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

SEC. 43.2.2. PURPOSE.

The Board of Supervisors hereby finds and
declares that it is necessary and essential to the
well-being of the City and Countj^ that it provide
financial assistance to promote the economic
development of the City and County. Such eco-
nomic development will serve the following pub-
lic purposes and municipal affairs of the City and
County:

(a) The full and gainful emplojonent of resi-
dents of the City and County;

(b) The full and efficient utilization and
modernization of existing industrial, coramercial
and business facilities;

(d) The growth of the City and County's tax
base through increased property values and con-
suraer purchasing;

(e) The reduction of the need for and costs of
welfare and other remedial progirams;

(f) The reduction of urban ills, such as crime,
attributable in part to inadequate economic op-
portunities;

(g) The stability and diversification of the
City and County's economy;

3995

Sec. 43.2.2.

San Francisco - Administrative Code

3996

(h) The lowering of the cost to City and
County consumers of necessary goods and ser-
vices;

(i) The environmentally optimum disposi-
tion of waste materials of the City and County;
and

(j) The enhancement of the general eco-
nomic prosperity, health, safety and welfare of
the residents of the City and County.

The availability of the financial assistance
authorized by this Article will serve those pur-
poses and the general plan of the City and
County by providing private enterprises and the
City and County with new methods of financing
capital outlays in the City and County and by
ensuring that economic development within the
City and County will reflect the local community's
needs and objectives and will be environmentally
optimum with respect to both the physical and
social environment of the City and County. The
City and County shall promote such public inter-
ests pursuant to this Article without adversely
affecting areas outside the City and County and
without conflicting with efforts by the State of
California to solve problems of statewide con-
cern. (Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.2.3. FULL AUTHORITY.

This Article is full authority for the issuance
of Bonds by the City and County for any of the
purposes specified herein. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

SEC. 43.2.4. ADDITIONAL AUTHORITY.

This Article shall be deemed to provide a
complete, additional, and alternative method for
doing the things authorized thereby, and shall be
regarded as supplemental and additional to the
powers conferred by other laws. The issuance of
Bonds under the provisions of this Article need
not comply with the requirements of any other
law applicable to the issuance of bonds. The
purposes authorized hereby may be effectuated
and Bonds are authorized to be issued for any
such purposes under this Article notwithstand-
ing that any other law may provide for such

purposes or for the issuance of bonds for like
purposes and without regard to the require-
ments, restrictions, limitations or other provi-
sions contained in any other law. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.2.5. DEFINITIONS.

Unless the context otherwise requires, the
terms defined in this Article shall have the
following meanings:

(a) "Board" means the Board of Supervisors
of the City and County of San Francisco.

(b) "Bonds" means the bonds, notes, certifi-
cates, debentures and other obligations and evi-
dences of indebtedness authorized to be issued
by the City and County pursuant to this Article
and payable as provided in this Article.

(d) "Cost" means the total of all costs in-
curred by or on behalf of a Participating Party to
carry out all works and undertakings and to
obtain all rights and powers necessary or inci-
dent to the acquisition, construction, installa-
tion, reconstruction, rehabilitation or improve-
ment of a Facility. "Cost" may include all costs of
issuance of bonds for such purposes, costs for
construction undertaken by a Participating Party
as its own contractor, capitalized bond interest,
reserves for debt service and for repairs, replace-
ments, additions and improvements to a Facility,
and other working capital incident to the opera-
tion of a Facility.

(e) "Facility" means any of the facilities,
places or buildings within, serving or otherwise
substantially connected to the City and County
which are, or will be, maintained and operated
for industrial, manufacturing, research and de-
velopment, commercial or business purposes, or
energy uses, or any combination of such pur-
poses and uses, and conform to the general plan
of the City and County, are approved by the City
and County for the financing authorized by this
Article, such approval being given only when the
City and County finds and determines that such
financing (1) will substantially promote one or
more of the public purposes listed in Section

3997

Municipal Finance Law - Economic Development Bond Law

Sec. 43.2.8.

43.2.2, and (2) will not have the proximate effect
of the relocation of any substantial operations of
the Participating Party from one area of the
State to another or the abandonment of any
substantial operations of such Participating Party
within other areas of the State, or, if such financ-
ing will have either of such effects, then such
financing is reasonably necessary to prevent the
relocation of any substantial operations of the
Participating Party from an area within the
State to an area outside the State.

A "Facility" may also be an activity which
may otherwise be financed pursuant to the Cali-
fornia Industrial Development Financing Act (Gov-
ernment Code Section 91500 et seq.) to the
extent said Act permits the financing of such
activity under alternative authority. "Facility"
includes, without limitation, real and personal
property, land, buildings, structures, fixtures,
machinery and equipment and all such property
related to or required or useful for the operation
of a Facility. Facility does not include any facil-
ity, place or building used or to be used primarily
for sectarian instruction or study or as a place for
devotional activities or religious worship.

(f) "Participating Party" means any indi-
vidual, association, corporation, partnership or
other entity which is approved by the City and
County to undertake the financing of the Costs of
a Facility for which this Article authorizes the
issuance of Bonds.

(g) "Responsible Department" means the
Mayor except that, unless otherwise specified by
the Mayor, Responsible Department for propos-
als for financing under this Article of any Facility
described in Section 103(b)(4) of the Internal
Revenue Code of 1954, as amended, shall be that
department, office, commission or authority of
the City and County having jurisdiction over the
proposed Facility.

(h) "Revenue" means amounts received by
the City and County as payments of principal,
interest, and all other charges with respect to a
loan authorized by this Article, as payments
under a lease, sublease or sale agreement with
respect to a Facility, as proceeds received by the
City and County from mortgage, hazard or other

insurance on or with respect to a loan (or prop-
erty securing such loan), lease, sublease or sale
agreement all other rents, charges, fees, income
and receipts derived by the City and County
from the financing of a Facility authorized by
this Article, any amounts received by the City
and County as investment earnings on moneys
deposited in any fund securing the Bonds, and
such other legally available moneys as the Board
of Supervisors may, in its discretion, lawfully
designate as Revenues. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

SEC. 43.2.6. NO LIMITATION ON
APPROPRIATIONS.

Revenues, as defined by this ^Article, and the
expenditure of such Revenues shall not be taken
into account in any manner in determining the
City and County's compliance with Article XIIIB
of the California Constitution. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

TITLE 2 - FINANCING FACILITIES

SEC. 43.2.7. LOANS FOR FACILITIES.

The City and County is hereby authorized to
make, purchase, or otherwise contract for the
making of, a mortgage or other secured or unse-
cured loan, with the proceeds of Bonds and upon
such terms and conditions as the City and County
shsill deem proper, to any Participating Party for
the Costs of a Facihty (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000)

SEC. 43.2.8. ACQUISITION,
CONSTRUCTION, LEASING i\ND
SELLING OF FACILITIES.

The City and County is authorized to ac-
quire, construct, enkirge, remodel, renovate, al-
ter, improve, furnish, equip and lease as lessee,
with the proceeds of Bonds, a Facility solely for
the purpose of selling or leasing as lessor such
Facility to such Participating Party, and is fur-
ther authorized to make any contracts for such
pui-poses. The City and County is also autho-
rized to contract with such Participating Party to

Sec. 43.2.8.

San Francisco - Administrative Code

3998

undertake on behalf of the City and County to
construct, enlarge, remodel, renovate, alter, im-
prove, furnish and equip such Facility.

The City and County is authorized to sell or
lease, upon such terms and conditions as the
City and County shall deem proper, to a Partici-
pating Party any Facility owned by the City and
County under this Article, including a Facility
conveyed to the City and County in connection
with a financing authorized by this Article but
not being financed hereunder. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.2.9. APPLICATIONS FOR
APPROVAL.

Any person may apply to the Responsible
Department for approval as a Participating Party
and for approval of a Facility for financing under
this Article. Applications shall set forth such
information as the Responsible Department may
require in order to enable the Responsible De-
partment to evaluate the applicant, the Facility
and its proposed costs. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

SEC. 43.2.10. FEES.

The City and County is hereby authorized to
charge Participating Parties application, commit-
ment, financing and other fees, in order to re-
cover all administrative and other costs and
expenses incurred in the exercise of the powers
and duties' conferred by this Article. The Respon-
sible Department shall transmit a letter agree-
ment or contract to a Participating Party which
will obligate such party to pay such fees and
expenses as the City and County may charge or
incur hereunder. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.2.11. INSURANCE.

The City and County is hereby authorized to
obtain, or aid in obtaining, from any department
or agency of the United States or of the State of
California or any private company, any insur-
ance or guarantee as to, or of, or for the payment
or repayment of, interest or principal, or both,
rents, fees or other charges, or any part thereof,
on any loan, lease or sale obligation or any

instrument evidencing or securing the same,
made or entered into as authorized by this Ar-
ticle; and is authorized to accept pajnnent in
such manner and form as provided therein in the
event of default by a Participating Party, and to
assign any such insurance or guarantee as secu-
rity for Bonds. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.2.12. RENTS AND CHARGES.

The City and County is hereby authorized to
fix rents, payments, fees, charges and interest
rates for a financing authorized by this Article
and to agree to revise from time to time such
rents, payments, fees, charges and interest rates
to reflect changes in interest rates on Bonds,
losses due to defaults or changes in other admin-
istrative expenses. (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000)

SEC. 43.2.13. SECURITY FOR LOANS.

The City and County is hereby authorized to
hold deeds of trust or mortgages or security
interests in personal property as security for
loans and other obligations authorized by this
Article and to pledge or assign the same as
security for repayment of Bonds. Such deeds of
trust, mortgages or security interests, or any
other interest of the City and County in any
Facility, may be assigned to, and held on behalf
of, the City and County by any bank or trust
company appointed to act as trustee by the City
and County in any resolution or indenture pro-
viding for the issuance of Bonds. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.2.14. PROFESSIONAL
SERVICES.

The City and County is hereby authorized to
contract for such engineering, architectural, fi-
nancing, accounting, leasing, legal or other pro-
fessional services as may be necessary in the
judgment of the City and County to accomplish
the purposes of this Article. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.2.15. PUBLIC WORKS
REQUIREMENTS INAPPLICABLE.

Except as specifically provided in this Article,
the acquisition, construction, installation, recon-

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Municipal Finance Law - Economic Development Bond Law

Sec. 43.2.19.

struction, re^habilitation or improvement of a
Facility financed under this Article shall not be
subject to any requirements relating to build-
ings, works or improvements owned or operated
by the City and County, and any requirement of
public competitive bidding or other procedural
restriction imposed on the award of contracts for
acquisition or construction of a City and County
building, work or improvement or to the lease,
sublease, sale or other disposition of City and
County property shall not be applicable to any
action taken under this Article. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.2.16. ADDITIONAL POWERS.

In addition to all other powers specifically
granted by this Article, the City and County is
hereby authorized to contract for and do all
things necessary or convenient to carry out the
purposes of this Article, provided, however, that
the City and County shall not have the power to
operate a Facility financed under this Article as
a business, except temporarily in the case of a
default by a Participating Party. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

TITLE 3 - BONDS

SEC. 43.2.17. ISSUANCE OF BONDS.

The City and County is authorized to issue
Bonds in an unlimited aggregate principal amount,
from time to time, in such series and amounts as
are determined by the Board of Supervisors by
resolution to be necessary or appropriate to pro-
vide for the Facility to be financed and its asso-
ciated Costs. Bonds shall be negotiable instru-
ments for all purposes, subject only to the
provisions of such Bonds for registration. (Added
by Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.2.18. BONDS NOT DEBT OF
CITY.

All of the Bonds authorized under this Article
shall be limited obligations of the City and County
payable from all or any specified part of the
revenues and the moneys and assets authorized
in this Article to be pledged or assigned to secure
payment of Bonds. Such revenues, moneys or

assets shall be the sole source of repayment of
such issues of Bonds. Bonds issued as authorized
by this Article shall not be deemed to constitute
a debt or liability of the City and County or a
pledge of the faith and credit of the City and
County but shall be payable solely from specified
revenues, moneys and assets. The issuance of
Bonds shall not directly, indirectly, or contin-
gently obligate the City and County to levy or
pledge any form of taxation or to make any
appropriation for their payment.

All Bonds shall contain on the face thereof a
statement to the following effect: Neither the
faith and credit nor the taxing power of the City
and County of San Francisco is pledged to the
pajinent of the principal of or premium, if any, or
interest on this bond. (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000)

SEC. 43.2.19. BOND TERMS.

Bonds shall be issued as serial bonds, term
bonds, installment bonds or pass-through certifi-
cates or any combination thereof The Respon-
sible Department shall determine the terms and
timing of the issuance of particular Bonds in
accordance with the resolution of the Board of
Supervisors approving the particular Facility to
be financed thereby. Bonds shall bear such date
or dates, mature at such time or times not to
exceed 40 years, bear interest at such fixed or
variable rate or rates approved by the Partici-
pating Party whose Facility is being financed but
not to exceed the maximum rate permitted by
law, be payable at such time or times, be in such
denominations, be in such form, either coupon or
registered, carry such registration privileges, be
executed in such manner, be payable in lawful
money of the United States of America at such
place or places, be subject to such terms of
redemption and have such other terms and con-
ditions as such resolution, or any indenture to be
entered into by the City and County pursuant to
such resolution, shall provide. Bonds shall be
sold at either public or private sale and for such
prices as the City and County shall determine.
(Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

Sec. 43.2.20.

San Francisco - Administrative Code

4000

SEC. 43.2.20. BOND PROVISIONS.

Any resolution relating to the issuance of any
Bonds, or any indenture to be entered into by the
City and County pursuant to such resolution,
may contain provisions respecting any of the
following terms and conditions, which shall be a
part of the contract with the holders of such
Bonds:

(a) The terms, conditions and form of such
Bonds and the interest and principal to be paid
thereon;

(b) Limitations on the uses and purposes to
which the proceeds of sale of such Bonds may be
applied, and the pledge or assignment of such
proceeds to secure the payment of such Bonds;

(c) Limitations on the issuance of additional
parity Bonds, the terms upon which additional
parity Bonds may be issued and secured, and the
refunding of outstanding Bonds;

(d) The setting aside of reserves, sinking
funds and other funds and the regulation and
disposition thereof;

(e) The pledge or assignment of all or any
part of the Revenues and of any other moneys or
assets legally available therefor (including loans,
deeds of trust, mortgages, leases, subleases, sales
agreements and other contracts and security
interests) and the use and disposition of such
Revenues, moneys and assets, subject to such
agreements with the holders of Bonds as may
then be outstanding;

(f) Limitation on the use of Revenues for
operating, administration or other expenses of
the City and County;

(g) Specification of the act or omissions to
act which shall constitute a default in the duties
of the City and County to holders of such Bonds,
and providing the rights and remedies of such
holders in the event of default, including any
limitations on the right of action by individual
bondholders;

(h) The appointment of a corporate trustee
to act on behalf of the City and County and the
holders of its Bonds, the pledge or assignment of
loans, deeds of trust, mortgages, leases, sub-
leases, sale contracts and any other contracts to
such trustee, and the rights of such trustee;

(i) The procedure, if any, by which the terms
of any contract with bondholders may be amended
or abrogated the amount of such Bonds the
holders of which must consent thereto, and the
manner in which such consent may be given; and

(j) Any other provisions which the Board of
Supervisors or the Responsible Department may
deem reasonable and proper for the purposes of
this Article and the security of the bondholders.
(Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.2.21. PLEDGE OF REVENUES,
MONEY OR ASSETS; LIEN.

Any pledge of Revenues or other moneys or
assets as authorized by this Article shall be valid
and binding from the time such pledge is made.
Revenues, moneys and assets so pledged and
thereafter received by the City and County shall
immediately be subject to the lien of such pledge
without any physical delivery thereof or further
act, and the lien of any such pledge shall be valid
and binding as against all parties having claims
of any kind in tort, contract, or otherwise against
the City and County, irrespective of whether
such parties have notice thereof. Neither the
resolution nor any indenture by which a pledge
is created need be filed or recorded except in the
records of the City and County. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.2.22. NO PERSONAL LL^ILITY.

Neither the members of the Board of Super-
visors, the officers or employees of the City and
County or the Responsible Department, nor any
person executing any Bonds shall be liable per-
sonally on the Bonds or be subject to any per-
sonal liability or accountability by reason of the
issuance thereof (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.2.23. PURCHASE OF BONDS BY
CITY.

The City and County shall have the power
out of any funds available to purchase its Bonds.
The City and County may hold, pledge, cancel, or

4001

Municipal Finance Law - Economic Development Bond Law

Sec. 43.2.30.

resell such Bonds, in accordance with agree-
ments with the bondholders. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.2.24. REFUNDING BONDS.

The City and County is hereby authorized to
issue Bonds for the purpose of refunding any
Bonds then outstanding. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

SEC. 43.2.25. BOND ANTICIPATION
NOTES.

In anticipation of the sale of Bonds autho-
rized by this Article, the City and County is
hereby authorized to issue bond anticipation
notes, and to renew the same from time to time,
in such series and amounts as are determined by
the Board of Supervisors to be necessary or
appropriate for the Costs of Facilities approved
by the Board of Supervisors. Such notes shall be
payable from Revenues or other moneys or as-
sets authorized by this Article to be pledged to
secure payment of Bonds, and which are not
otherwise pledged, or from the proceeds of sale of
the particular Bonds in anticipation of which
they are issued. Such notes shall be issued in the
same manner as Bonds. The Responsible Depart-
ment shall determine the terms and timing of
the issuance of particular bond anticipation notes
in accord with the provisions of Section 43.2.17 of
this Chapter and the resolution of the Board of
Supervisors approving the particular Facility to
be financed thereby. Such notes, any resolution
relating to the issuance of such notes and any
indenture to be entered into by the City and
County pursuant to such resolution may contain
any provisions, conditions or limitations permit-
ted under Section 43.2.1 of this Chapter. (Added
by Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.2.26. VALIDITY OF BONDS.

The validity of the authorization and issu-
ance of any Bonds is not dependent on and shall
not be affected in any way by any proceedings
taken by the City and County for the approval of
any financing or the entering into of any agree-
ment, or by the failure to provide financing or

enter into any agreement, for which Bonds are
authorized to be issued under this Article. (Added
by Ord. 12-00, File No. 992117, App. 2/11/2000)

TITLE 4 - SUPPLEMENTAL PROVISIONS

SEC. 43.2.27. LIBERAL
CONSTRUCTION.

This Article, being necessary for the welfare
of the City and County and its inhabitants, shall
be liberally construed to effect its purposes.
(Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.2.28. OMISSIONS NOT TO
AFFECT VALIDITY OF BONDS.

Any omission of <any officer of the City and
County in proceedings under this Article or any
other defect in the proceedings shall not invali-
date such proceedings or the Bonds issued pur-
suant to this Article. (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000)

SEC. 43.2.29. ARTICLE CONTROLLING.

SEC. 43.2.30. SEVERABILITY.

If any provisions of this Article or the appli-
cation thereof to any person or circumstance is
held invalid, such invalidity shall not affect any
other provision or application of this Article
which can be given effect without the invalid
provision or application, and to this end the
provisions of this i^irticle are declared to be
severable. The Board of Supervisors hereby de-
clares that it would have adopted and passed
this Article and each section, subsection, sen-
tence, clause, phrase and word hereof, irrespec-
tive of the fact that any one or more of the other
sections, subsections, sentences, clauses, phrases

Sec. 43.2.30. San Francisco - Administrative Code 4002

or words hereof be declared invalid or unconsti-
tutional. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

[The next page is 4011]

ARTICLE III: AFFORDABLE HOUSING AND HOME OWNERSHIP BOND PROGRAM

Sec. 43.3.1. Purpose.

Sec. 43.3.2. Issuance of Bonds.

Sec. 43.3.3. Housing Account.

Sec. 43.3.4. Proposed Use of Bond Proceeds.

Sec. 43.3.5. Mayor's Office of Housing.

Sec. 43.3.6. Regulations.

Sec. 43.3.7. Reports to the Board of
Supervisors.

SEC. 43.3.1. PURPOSE.

The purpose of this Article III is to describe
the affordable housing and home ownership bond
program ("program") pursuant to which the City
and County of San Francisco ("City") may loan or
grant general obligation bond proceeds for the
development of affordable housing for low-
income households and for down payment assis-
tance to low and moderate income first-time
home buyers, each as further described in this
Article III. (Added by Ord. 12-00, File No. 992117,
App. 2/U/2000)

SEC. 43.3.2. ISSUANCE OF BONDS.

The City is authorized to issue $100,000,000
of general obligation bonds to finance (i) the
development of housing aff'ordable to low-income
households in the City and County of San Fran-
cisco, and (ii) down payment assistance to low
and moderate income first-time home buyers;
together with all other costs necessary or conve-
nient for the foregoing purposes. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.3.3. HOUSING ACCOUNT.

Bond proceeds shall be deposited into a sepa-
rate account to be established by the Controller.
Repajrments of loans made from this account
shall be applied first to finance development of
affordable rental housing and downpayment as-
sistance for low and moderate income first-time
homebuyers, in accordance with this Article III,
and then may be used for any other lawful

purpose under this program, subject to the bud-
get and fiscal provisions of the City's Charter.
Expenditures shall be subject to the budget and
fiscal provisions of the City's Charter. (Added by
Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.3.4. PROPOSED USE OF BOND
PROCEEDS.

Following payment of costs of issuance, 85
percent of the bond proceeds will be used for the
development of affordable rental housing through
the development account described in the regu-
lations, and 15 percent of the bond proceeds will
be used for downpayment assistance for low and
moderate income first-time homebuyers through
the downpajrment assistance loan account de-
scribed in the program regulations; including all
legally permissible administrative costs related
to the program. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.3.5. MAYOR'S OFFICE OF
HOUSING.

The Mayor's Office of Housing or its succes-
sor., or another agency or department as deter-
mined by the Mayor, will be responsible for the
administration of the program, subject to any
legislation and rules and regulations described
in this Article III. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.3.6. REGULATIONS.

The Mayor's Office of Housing will prepare
regulations for the program, which shall be sub-
ject to approval of the Board of Supen^isors by
resolution. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

SEC. 43.3.7. REPORTS TO THE BOARD
OF SUPERVISORS.

The Mayor's Office of Housing will provide an
annual report to the Board of Supervisors on the
status of the program. (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000)

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San Francisco - Administrative Code

[INTENTIONALLY LEFT BLANK]

ARTICLE IV; PUBLIC UTILITIES COMMISSION ENTERPRISE REVENUE BOND

ELECTION PROCEDURE

Sec. 43.4.1. Utility Revenue Bonds;

Submission to Voters.
Sec. 43.4.2. Statement of Purpose;

Incidental Expenses; Discretion.

Sec. 43.4.3. Regular or Special Meeting.
Sec. 43.4.4. Content of Resolution.
Sec. 43.4.5. Regular or Special Election;

Other Propositions.
Sec. 43.4.6. Payable Only from Revenues;

Not to be Secured by Taxing

Power.
Sec. 43.4.7. Publication and Distribution,
Sec. 43.4.8. Majority Vote of Electorate

Required.
Sec. 43.4.9. Issuance and Sale of Authorized

Bonds.

SEC. 43.4.1. UTILITY REVENUE BONDS;
SUBMISSION TO VOTERS.

Whenever the Charter requires that a Public
Utilities Commission revenue bond issue be sub-
mitted to the voters, this Board by resolution
adopted and signed by the Mayor shall submit
the proposed revenue bond issue to the voters
and shall set the date for the election. (Added by
Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.4.2. STATEMENT OF PURPOSE;
INCIDENTAL EXPENSES; DISCRETION.

The resolution authorizing submission of the
proposed revenue bond issue may include any
purpose authorized by the Revenue Bond Law of
1941, as it read, including amendments, on June
5, 1984, and may include any or all expenses
incidental to such purpose or connected there-
with and may include any combination of two or
more such purposes. (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000)

SEC. 43.4.3. REGULAR OR SPECIAL
MEETING.

The resolution calling a revenue bond elec-
tion may be adopted by a majority vote of all

members at a regular or special meeting and at
the same meeting £it which it is introduced.
(Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.4.4. CONTENT OF
RESOLUTION.

The resolution shall:

(a) State the purpose for which the bonds
are proposed to be issued.

(b) State the maximum principal amount of
the bonds.

(d) Fix the manner of holding the election.

(e) Fix the manner of voting on the issuance
of the bonds.

(f) State that in all other particulars the
election shall be held and the votes canvassed
pursuant to law governing general municipal
elections, the Charter, or as otherwise specified
in such resolution. (Added by Ord. 12-00, File
No,, 992117, App. 2/1:L/2000)

SEC. 43.4.5. REGULAR OR SPECIAL
ELECTION; OTHER PROPOSITIONS.

The resolution may provide for a special
election to consider the revenue bond proposition
or propositions or it may provide for including
the revenue bond proposition or propositions in
any city-wide election. (Added by Ord. 12-00, File
No, 992117, App. 2/11/2000)

SEC. 43.4.6. PAYABLE ONLY FROM
REVENUES; NOT TO BE SECURED BY
TAXING POWER.

The resolution shall state that the bonds are
to be revenue bonds, payable exclusively from
the revenue of a Public Utilities Commission
Enterprise and the resolution shall also state
that the bonds are not to be secured by the taxing

4023

Sec. 43.4.6. San Francisco - Administrative Code 4024

power of the City and County of San Francisco.
(Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.4.7. PUBLICATION AND
DISTRIBUTION.

The ballot proposition authorizing a sale of
revenue bonds shall be printed in the voters'
pamphlet and mailed to each registered voter
pursuant to Charter Section 9.110. No other
publication, mailing or distribution shall be re-
quired. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

SEC. 43.4.8. MAJORITY VOTE OF
ELECTORATE REQUIRED.

The votes of a majority of all the voters voting
on the proposition to issue revenue bonds are
required to authorize the issuance of the bonds.
(Added by Ord. 12-00, File No. 992117, App.
2/11/2000)

SEC. 43.4.9. ISSUANCE AND SALE OF
AUTHORIZED BONDS.

If the issuance of the bonds is authorized at
the election, the Public Utilities Commission
shall provide for their issuance and sale. (Added
by Ord. 12-00, File No. 992117, App. 2/11/2000)

[The next page is 4033]

ARTICLE V: PUBLIC UTILITIES COMMISSION SHORT-TERM INDEBTEDNESS

Sec. 43.5.1. Definitions.

Sec. 43.5.2. Authorization of Short-Term

Indebtedness.
Sec. 43.5.3. Credit or Liquidity Support.

Sec. 43.5.4. Maximum Short-Term
Indebtedness.

Sec. 43.5.5. Refunding Short-Term

Indebtedness.
Sec. 43.5.6. Construction.

SEC. 43.5.1. DEFINITIONS.

For purposes of this Article, the following
terms shall have the meanings given below:

(a) The term "Board" shall mean the Board
of Supervisors of the City.

(b) The term "Charter" shall mean the Char-
ter of this City.

(d) The term "Commission" shall mean the
Public Utilities Commission of the City.

(e) The term "Director" shall mean Director
of the City's Office of Public Finance, or her/his
or any successor to that Office. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000; Ord.
270-06, File No. 061297, App. 10/31/2006)

SEC. 43.5.2. AUTHORIZATION OF
SHORT-TERM INDEBTEDNESS.

Following voter approval or Board approval,
as the case may be, of the issuance of revenue
bonds by the Commission pursuant to Section
9.107 of the Charter or following Board approval
of any revenue bonds or other obligations pursu-
ant to Article VIIIB of the Charter, Commission
may incur short-term indebtedness in the form
of commercial paper, temporary notes or other
forms of indebtedness subject to the limitations
set forth below. In the case of revenue bond
authority obtained by the Commission pursuant

to Section 9.107 if the Charter, such short-term
indebtedness would be incurred in anticipation
of the issuance of such revenue bonds.

The issuance of such short-term indebted-
ness shall be subject to prior authorization by
the Board.

Except as provided in Section 43.5.5, use of
the proceeds of any such short-term indebted-
ness shall be limited to the purposes for which
the applicable revenue bonds or other indebted-
ness were approved by the voters or by the
Board, as the case may be. Short-term indebted-
ness incurred pursuant to this i^irticle shall not
result in interest costs or a maturity date exceed-
ing the limits, if any, fixed by the voters or the
Board, as the case may be, with respect to the
applicable revenue bond or indebtedness approv-
al(s).

Such short-term indebtedness shall be pay-
able solely from the proceeds of the applicable
revenue bonds, or revenues of the Commission
pledged, or to be pledged, to the payment of such
revenue bonds or other Board-authorized indebt-
edness. In the case of revenue bonds authorized
under Section 9.107 of the Charter, if any of the
principal of such short-term indebtedness is paid
from revenues of the Commission (other than
revenues derived froin grants) rather than from
the proceeds of revenue bonds, the principal
amount of revenue bonds the Commission is
thereafter authorized to issue shall be reduced
by the principal amount of short-term indebted-
ness paid from revenues (other than revenues
derived from grants).

Any pledge of revenues by the Coramission
for the payment of short-term indebtedness may,
in the sole discretion of the Director upon recom-
mendation of the Commission, be subordinate to
any pledge of the Commission for its revenue
bonds.

All indebtedness incurred pursuant to this
Article shall not constitute or evidence a debt of

4033

Supp. No. 2, October 2006

Sec. 43.5.2.

San Francisco - Administrative Code

4034

the City, nor a legal or equitable pledge, charge,
lien or encumbrance upon any property of the
City, or upon any income, receipt, revenue of the
City, except the revenues or funds, if any, pledged
by the Commission.

All short-term indebtedness incurred pursu-
ant to this Article must additionally comply with
each of the following provisions:

(a) Shall be evidenced by notes, warrants,
commercial paper or other evidences of indebt-
edness maturing not later than five years from
their issuance date; and

(b) Any draw on such short-term indebted-
ness (other than a draw to refund other short-
term indebtedness) shall be subject to approval
by the Director.

(c) The proceeds of such short-term indebt-
edness may only be used to fund projects that
have been approved by the Board of Supervisors,
either as part of the Public Utilities Commission's
annual budget or as the subject of a separate
approval.

Such short-term indebtedness may be sold at
the discretion of the Director, upon recommen-
dation of the Commission, by public or private
sale. All other terms and conditions for such
short-term indebtedness shall be determined by
the Director, upon recommendation of the Com-
mission. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000; Ord. 270-06, File No. 061297,
App. 10/31/2006)

SEC. 43.5.3. CREDIT OR LIQUIDITY
SUPPORT.

The Director, upon recommendation of the
Commission, may arrange for credit or liquidity
support for short-term indebtedness issued pur-
suant to this Article or may arrange for credit or
liquidity support to provide an additional source
of repayment for such short-term indebtedness.

Notwithstanding anything to the contrary in
this Article, any monies paid by a financial
institution under any agreement for credit or
liquidity support (a "credit facility") shall:

(a) Be repaid over a period not exceeding
the maximum maturity, if any, fixed by the
voters or the Board, as the case may be, in
connection with the applicable approval of rev-
enue bonds or other indebtedness;

(b) Bear interest at a rate that does not
cause the aggregate average interest cost to
exceed the maximum approved interest cost on
such short-term indebtedness over the entire
period such short-term indebtedness is outstand-
ing; and

(c) Have such other terms and conditions as
the Director, upon the recommendation of the
Commission, shall fix. (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000; Ord. 270-06, File No.
061297, App. 10/31/2006)

SEC. 43.5.4. MAXIMUM SHORT-TERM
INDEBTEDNESS.

The maximum principal amount of all short-
term indebtedness outstanding and incurred un-
der this Article, including any amounts outstand-
ing under any credit facility, together with the
outstanding principal amount of related revenue
bonds, shall not at any time exceed the maxi-
mum principal amount of the applicable revenue
bonds or other indebtedness approved by the
voters or the Board, as the case may be. (Added
by Ord. 12-00, File No. 992117, App. 2/11/2000;
Ord. 270-06, File No. 061297, App. 10/31/2006)

SEC. 43.5.5. REFUNDING SHORT-TERM
INDEBTEDNESS.

The Commission, with the prior approval of
the Director, may issue commercial paper, refund-
ing notes, warrants, or other evidences of short-
term indebtedness, in anticipation of the issu-
ance of revenue bonds, for the purpose of pajdng
and redeeming, at or prior to maturity, outstand-
ing short-term indebtedness issued in accor-
dance with this Article. Notwithstanding the
preceding sentence, any short-term indebted-
ness issued to refund outstanding short-term
indebtedness may not:

(a) Exceed the interest cost limitation set
forth in Section 43.5.2; and

(b) Exceed the limitation on the maximum
principal amount of short-term indebtedness set
forth in Section 43.5.4; and

(c) Mature more than five years from the
original date of issuance of the original short-
term indebtedness it is refunding.

Supp. No. 2, October 2006

4035 Municipal Finance Law - Public Utilities Commission Sec. 43.5.6.

Short-Term Indebtedness

Short-term indebtedness issued to refund
outstanding short-term indebtedness may be re-
funded by the Commission in accordance with
this Section 43.5.5. (Added by Ord. 12-00, File
No. 992117, App. 2/11/2000)

SEC. 43.5.6. CONSTRUCTION.

The powers conferred by the provisions of
this Article are in addition to and supplemental
to the powers conferred by the Charter or any
other ordinance or law. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

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Supp. No. 2, October 2006

ARTICLE VI: SAN FRANCISCO REFUNDING REVENUE BOND ACT

Sec, 43.6.1. Declaration of Policy.

Sec. 43.6.2. Name.

Sec. 43.6.3. Procedure.

Sec. 43.6.4. Amendments.

Sec. 43.6.5. Additional Procedures.

Sec. 43.6.6. Net Debt Savings Calculation.

Sec. 43.6.7. Construction.

SEC. 43.6.1. DECLARATION OF POLICY.

It is hereby declared to be the policy of the
City to permit the refunding of outstanding
revenue bonds whenever such refunding is ex-
pected to result in net debt service savings
calculated as provided in this Article. This Ar-
ticle is enacted pursuant to the powers reserved
to the City under Sections 3, 5 and 7 of Article XI
of the Constitution of the State of California and
the Charter. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.6.2. NAME.

This Article shall be known as the San Fran-
cisco Refunding Revenue Bond Act. (Added by
Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.6.3. PROCEDURE.

Whenever the public interest and necessity
so require, the legislative body, as hereinafter
defined, may, acting under this Article, authorize
the issuance of refunding bonds in order to
refund outstanding revenue bonds. Refunding
bonds issued to refund water revenue bonds
issued under Section 9.109 of the Charter shall
be issued under Section 9.109 of the Charter, as
amended by the procedures herein. Refunding
bonds shall be issued by the procedures provided
for in the Revenue Bond Law of 1941 (Article 6 of
Part 1 of Division 2 of Title 5 of the California
Government Code, commencing with Section
54300) as it read, including amendments, on
June 5, 1984, except as amended herein and,
further, except that the provisions of said Rev-

enue Bond Law of 1941 set forth in Sections
54380 through 54388, inclusive, and Sections
54354.5, 54422, 54424, 54515 and 54522, any
references to said Sections, and any provisions of
said Revenue Bond Law of 1941 that are incon-
sistent with or conflict with the Charter shall not
apply to the issuance and sale of such refunding
bonds. Reference is hereby made to three copies
of said Revenue Bond Law of 1941 (as in effect on
June 5, 1984), filed for convenience in the office
of the Clerk of the Board of Supervisors on July
7, 1987 and all of the provisions of said Revenue
Bond Law of 1941 (as in effect on June 5, 1984
except as in this Article otherwise expressly
provided) are hereby incorporated in this Article
by reference and made a part hereof. The legis-
lative body may authorize the issuance of the
refunding bonds by means of an indenture, reso-
lution, ordinance, order, agreement or other in-
strument in writing and, if the legislative body
establishes the minimum savings to be gener-
ated by the issuance of such refunding bonds,
may delegate to appropriate officials or officers
of the City or of the legislative body the authority
to determine the final terms, amounts, maturi-
ties, interest rates and other provisions of said
refunding bonds. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.6.4. AMENDMENTS.

Certain provisions of said Revenue Bond Law
of 1941 (as in effect on June 5, 1984), as incor-
porated herein, are revised, as follows:

(a) Section 54402(b) of said Revenue Bond
Law of 1941 (as in effect on June 5, 984) is
hereby revised to read as follows:

(b) The interest of the bonds, either
fixed or variable, at such rate or rates
and payable at the times and in the
manner specified.

4043

Sec. 43.6.4.

San Francisco - Administrative Code

4044

(b) Section 54403 of said Revenue Bond
Law of 1941 (as in effect on June 5, 1984) is
revised to read as follows:

Any premium payable on the bonds
shall be in the amount or amounts
specified by the legislative body.

The legislative body may sell the bonds
at a price above or below par in such
manner at public or private sale as it
determines by resolution is appropri-
ate.

(d) The following three sections are added
to Article 1 of the Act, said sections to read as
follows:

§ 54317. Legislative body, definition

"Legislative body" means the com-
mission, board or other governing body
that adopted the resolution authoriz-
ing the issuance of the bonds to be
refunded, and any successor to such
commission, board or other governing
body.
§ 54318. Resolution, definition

"Resolution" means, unless the con-
text otherwise requires, the instru-
ment providing the terms and condi-
tions for the issuance of the revenue
bonds, and may be an indenture, reso-
lution, ordinance, order, agreement or
other instrument in writing.

§ 54319. Fiscal agent, definition

"Fiscal agent" means any fiscal
agent, trustee, paying agent, deposi-
tory or other fiduciary provided for in
the resolution authorizing the issu-
ance of the refunding bonds.

(Added by Ord. 12-00, File No. 992117, App.

2/11/2000)

SEC. 43.6.5. ADDITIONAL
PROCEDURES.

Prior to the issuance of refunding bonds by
the commission, board or other governing body.

there shall be presented to the Board of Super-
visors and filed with the Clerk of the Board of
Supervisors a report of said commission, board
or other governing body setting forth the mini-
mum amount of savings to be generated in terms
of scheduled principal and interest pajrments by
the issuance of the refunding bonds. (Added by
Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.6.6. NET DEBT SAVINGS
CALCULATION.

(a) Acting under the provisions of the Char-
ter or under any other provision of general State
law, the Board of Supervisors may provide for
the issuance of refunding bonds for the purpose
of refunding any outstanding revenue bonds of
the City or its commissions. No voter approval
shall be required for any such refunding bonds
which provide net debt service savings to the
City on a present value basis calculated as pro-
vided in such provisions of general State law or
by other ordinance of the Board of Supervisors or
as hereinafter provided in this Section 43.6.6.
Subject to the foregoing limitation, the principal
amount of the refunding bonds (in aggregate or
with respect to any maturity) may be more than,
less than or the same as the principal amount of
the bonds to be refunded.

(b) Net debt service savings shall be calcu-
lated by comparing the present value of the
aggregate debt service on the refunding bonds to
that of the refunded bonds as of the dated date of
the refunding bonds using an assumed rate of
interest equal to the jdeld on the refunding
bonds. To the extent required, the present value
of any funds contributed to the refunding by the
City shall be deducted from the savings calcula-
tion. Notwithstanding any provision of general
State law to the contrary, this Section 43.6.6
shall provide an alternative means of calculating
debt service savings to any procedure contained
in general State law. The City is authorized to
rely on any other State law procedure related to
calculating debt service savings.

(c) This Section 43.6.6 has been adopted
pursuant to Section 9.109 of the Charter. (Added
by Ord. 12-00, File No. 992117, App. 2/11/2000)

4045 Municipal Finance Law - San Francisco Refunding Revenue Bond Act Sec. 43.6.7.

SEC. 43.6.7. CONSTRUCTION.

The powers conferred by the provisions of
this Article are in addition to and supplemental
to the powers conferred by the Charter or any
other ordinance or by law. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

[The next page is 4051]

San Francisco - Administrative Code

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ARTICLE VII: SAN FRANCISCO BOND FACILITATION ACT

Sec. 43.7.1. Declaration of Policy.

Sec. 43.7.2. Name.

Sec. 43.7.3. Definitions.

Sec. 43.7.4. Interest Payments.

Sec. 43.7.5. Issuance by Authority of

Governing Bodies.
Sec. 43.7.6. Authority for Actions in

Addition to Special Provisions.
Sec. 43.7.7. Construction.

SEC. 43.7.1. DECLARATION OF POLICY.

It is hereby declared to be the policy of the
City to permit interest payable on indebtedness
of the City or of any of its Commissions, Depart-
ments or Agencies to be payable at such time or
times as may facilitate the sale of the indebted-
ness pursuant to the procedure set forth in this
Article as well as by any other method permitted
by law. This Article is enacted pursuant to the
powers resei'ved to the City under Sections 3, 5
and 7 of Article XI of the Constitution of the
State of California and Section 1.101 of the
Charter. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

SEC. 43.7.2. NAME.

This Article shall be known as the San Fran-
cisco Bond Facilitation Act. (Added by Ord. 12-
00, File No. 992117, App. 2/11/2000)

SEC. 43.7.3. DEFINITIONS.

As used in this Article:

(a) "Bonds" means any bonds, notes, certifi-
cates of indebtedness or other evidences of in-
debtedness issued after April 1, 1991, by a public
body which is authorized to issue bonds, notes,
certificates of indebtedness or other evidence of
indebtedness.

(b) "Public body" means the City or any
Commission,, Department or Agency thereof.

(c) "Governing body" means the governing
board, commission, board of supervisors, board
of directors or similar multimember body which
exercises authority over a public body. (Added by
Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.7.4. INTEREST PAYMENTS.

Notwithstanding any other provision of law
specifying that interest on Bonds is payable
semiannually, interest on Bonds is payable at
the times established in the resolution, inden-
ture, agreement or other instrument providing
for the issuance of the Bonds. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.7.5. ISSUANCE BY AUTHORITY
OF GOVERNING BODIES.

Notwithstanding any other provision of law
specifying that Bonds shall be issued pursuant
to a resolution of a governing body of a public
body, a governing body of a public body may
authorize the issuance of Bonds pursuant to a
resolution, indenture, agreement or other instru-
ment providing for the issuance of Bonds. (Added
by Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.7.6. AUTHORITY FOR ACTIONS
IN ADDITION TO SPECIAL PROVISIONS.

The general authority provided in this Article
is intended to be in addition to, and not limited
by, specific provisions authorizing the issuance of
bonds, notes or other evidences of indebtedness
and is separate and complete authority for the
actions authorized in this Article. (Added by Ord.
12-00, File No. 992117, App. 2/11/2000)

SEC. 43.7.7. CONSTRUCTION.

[The next page is 4061]

4051

San Francisco - Administrative Code

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ARTICLE VIII: REFUNDING BOND SAVINGS TEST ACT

Sec. 43.8.1. Declaration of Policy.

Sec. 43.8.2. Name.

Sec. 43.8.3. Definitions.

Sec. 43.8.4. Alternative Savings Test for

Refunding Bonds.
Sec. 43.8.5. Construction.

SEC. 43.8.1. DECLARATION OF POLICY.

It is hereby declared to be the policy of the
City to permit the refunding of outstanding
general obligation bonds, revenue bonds and
lease obligations of the City whenever such re-
funding shall result in net debt service savings to
the City pursuant to the procedure set forth in
this Article as well as by any other method
permitted by law or other ordinance of the Board,
This Article is enacted pursuant to the powers
reserved to the City under Sections 3, 5 and 7 of
Article XI of the Constitution of the State of
California and Sections 9.106, 9.108 and 9.109 of
the Charter. (Added by Ord. 12-00, File No.
992117, App. 2/11/2000)

SEC. 43.8.2. NAME.

This Article shall be known as the Refunding
Bond Savings Test Act. (Added by Ord. 12-00,
File No. 992117, App. 2/11/2000)

SEC. 43.8.3. DEFINITIONS.

For purposes of this Article, the following
terms shall have the meanings given below:

(a) The term "Board" shall mean the Board
of Supervisors of the City.

(b) The term "Charter" shall mean the Char-
ter of this City.

(d) The term "lease obligations" shall in-
clude the City's obligation under any lease en-
tered into with any nonprofit corporation, author-
ity or other entity which issues, or causes to be

issued, lease revenue bonds or certificates of
participation secured by, or evidencing interests
in, the City's obligation under such lease.

(e) The term "refunded bond" shall mean
any outstanding general obligation bond, rev-
enue bond or lease obligation to be refunded by
the City

(f) The term "refunding bond" shall mean
anj*^ bond issued or lease obligation entered into
for the purpose of refunding in whole or in part,
an}^ general obligation bond or any lease obliga-
tion.

(g) The term "yield" shall mean the yield on
the refunding bonds as calculated pursuant to
the provisions of the Internal Revenue Code of
1986, as amended from time to time. (Added by
Ord. 12-00, File No. 992117, App. 2/11/2000)

SEC. 43.8.4. ALTERNATIVE SAVINGS
TEST FOR REFUNDING BONDS.

(a) Acting under the provisions of the Char-
ter or under any other provision of general State
law, the Board may provide for the issuance of
refunding bonds for the purpose of refunding any
outstanding general obligation bonds, revenue
bonds or lease obligations of the City. No voter
approval shall be required for any such refund-
ing bonds which provide net debt service savings
to the City on a present value basis calculated as
provided in such provisions of general State law
or by other ordinance of the Board or as herein-
after provided in Section 43.8.4(b). Subject to the
foregoing limitation, the principal amount of the
refunding bonds (in aggregate or with respect to
any maturity) may be more than, less than or the
same as the principal amount of the bonds or
lease obligations to be refunded.

(b) Net debt service savings shall be calcu-
lated by comparing the present value of the
aggregate debt service on the refunding bonds to
that of the refunded bonds as of the date of the
refunding bonds using an assumed rate of inter-
est equal to the yield on the refunding bonds. To

4061

Supp. No. 5, February 2007

Sec. 43.8.4.

San Francisco - Administrative Code

4062

the extent required, any funds contributed to the
refunding by the City shall be deducted from the
savings calculation. Notwithstanding any provi-
sion of general State law to the contrary, this
Section 43.8.4(b) shall provide an alternative
means of calculating debt service savings to any
procedure contained in general State law. The
City is authorized to rely on any other State law
procedure related to calculating debt service
savings.

(c) The Board may authorize the issuance
and provide the final terms, amounts, maturi-
ties, interest rates and other provisions of the
refunding bonds (including a reference to the
procedure under which debt service savings is to
be calculated) by means of an indenture, resolu-
tion, ordinance, order, agreement or other instru-
ment in writing. If the Board establishes the
minimum savings to be generated by the issu-
ance of such refunding bonds, the Board may
delegate to appropriate officials or officers of the
City or of the Board the authority to determine
the final terms, amounts, maturities, interest
rates and other provisions of said refunding
bonds. (Added by Ord. 12-00, File No. 992117,
App. 2/11/2000)

SEC. 43.8.5. CONSTRUCTION.

Supp. No. 5, February 2007

ARTICLE IX: HOUSING BOND APPROVAL POLICY

Sec. 43.9.1. Findings.

Sec. 43.9.2. Definitions.

Sec. 43.9.3. Declaration of Policy.

Sec. 43.9.4. Bonds Issued by an Authority to

Finance a Residential Project.
Sec. 43.9.5. Policy Regarding Other

Authority Bonds.
Sec. 43.9.6. Apphcability

SEC. 43.9.1. FINDINGS.

The City and County of San Francisco (the
"City") promotes the financing and construction
of new affordable and mixed income housing by,
among other things, issuing multifamily housing
revenue bonds or 501(c)(3) bonds for private
projects. The proceeds of such bonds are loaned
by the City to a project sponsor to help it finance
affordable and mixed income housing construc-
tion. The City is not liable for repayment of the
bonds; the primary reason for the City's partici-
pation is that interest on qualifying City housing
bonds is exempt from federal income taxation,
reducing the project's cost of borrowing and
thereby helping to make the affordable housing
projects financially feasible. In return for the
City's issuance of the bonds, the sponsor agrees
to, among other things, (i) repay the loan by
making payments of debt service and other
amounts payable in connection with the bonds,
(ii) enter a regulatory agreement with the City
that sets forth restrictions on the housing units
to ensure their affordability, and (iii) comply
with certain other City contracting requirements
that apply to contractors receiving City funds for
project construction (the "City's Contracting Re-
quirements"). The City's Contracting Require-
ments include, without limitation, provisions re-
quiring compliance with the City's contracting
requirements and policies regarding nondiscrimi-
nation, equal benefits, minimum compensation,
health care accountability, prevailing wage, local
disadvantaged business enterprise subcontract-

ing and jobs programs (such the City's First
Source Hiring or City Build programs), as appli-
cable. The San Francisco Redevelopment Agency
(the "Agency") issues these housing revenue bonds
as well and in doing so requires compliance with
applicable Agency contracting requirements and
policies, which are similar to the City's Contract-
ing Requirements.

The City also supports affordable and mixed
income housing construction through its mem-
bership in joint exercise of powers authorities
such as the California Statewide Communities
Development Authority and the Association of
Bay Area Governments (all such joint powers
authorities of which the City is a member are
referred to in this ordinance individually as the
"Authority"). Each Authority issues housing rev-
enue bonds similar to the bonds described in the
preceding paragraph. Under the terms of the
City's membership in these Authorities, along
with certain provisions of the federal Internal
Revenue Code if such bonds are to be issued on a
tax-exempt basis, the City's Board of Supervi-
sors (the "Board of Supervisors") must adopt a
resolution approving the bond financing prior to
its issuance (a "TEFIM Resolution"). Again, the
City is not liable for repayment of the bonds.

While the Authority and City transaction
structures are similar on their face, in an Au-
thority transaction the City is typically not a
party to the transaction documents, and as such
the project sponsors are not required to comply
with the City's Contracting Requirements. (Added
by Ord. 36-07, File No. 060897, App. 3/9/2007)

SEC. 43.9.2. DEFINITIONS.

(a) "Agency" shall have the meaning as-
signed to such term in Section 43.9.1.

(b) "Authority" shall have the meaning as-
signed to such term in Section 43.9.1.

4063

Supp. No. 5, February 2007

Sec. 43.9.2.

San Francisco - Administrative Code

4064

(d) "City" shall have the meaning assigned
to such term in Section 43.9.1.

(e) "City's Contracting Requirements" shall
have the meaning assigned to such term in
Section 43.9.1.

(f) "HUD" shall mean the United States
Department of Housing and Urban Develop-
ment.

(g) "Other Authority Bonds" shall mean any
tax exempt bonds proposed to be issued by an
Authority on behalf of a project sponsor to fi-
nance or refinance any capital project other than
a Residential Project, including but not limited
to the financing of assisted living or educational
facilities and refunding bonds relating to any
type of project.

(h) "Residential Project" shall mean a resi-
dential development (including residential por-
tions of a mixed-use project) involving new con-
struction, an addition, a conversion, or a
rehabilitation, the financing of which is proposed
to be assisted by any of the following: a HUD
mortgage insurance program; a contract for
project-based Section 8 rental assistance; HUD
operating funds under HUD's Section 202 or
Section 811 programs; or participation in the
Low Income Housing Tax Credit program.

(i) "TEFRA Resolution" shall have the mean-
ing assigned to such term in Section 43.9.1.
(Added by Ord. 36-07, File No. 060897, App.
3/9/2007)

SEC. 43.9.3. DECLARATION OF POLICY.

This Board of Supervisors hereby declares
that it is the policy of the City to require spon-
sors of private residential projects financed with
multifamily housing revenue bonds or 501(c)(3)
bonds within the City to comply with the City's
Contracting Requirements. If such bonds are to
be issued by an Authority, it shall be the policy of
the City to require a project sponsor to satisfy
the requirements of Section 43.9.4 as a condition
to the City's approval of a TEFRA resolution. For
bond-financed residential projects located within
a redevelopment area, the Agency's policies and
contracting requirements applicable to that re-
development area may replace some or all of the

City's Contracting Requirements for purposes of
this section. (Added by Ord. 36-07, File No.
060897, App. 3/9/2007)

SEC. 43.9.4. BONDS ISSUED BY AN
AUTHORITY TO FINANCE A
RESIDENTIAL PROJECT.

Any TEFRA Resolution to be considered by
the Board of Supervisors in connection with
bonds proposed to be issued by an Authority to
finance all or a portion of a residential project
must include or be accompanied by the following:

(a) An agreement by the project sponsor to
be bound by provisions consistent with the City's
Contracting Requirements, provided that in rec-
ognition of the exemptions from the Minimum
Compensation Ordinance and the Health Care
Accountability Ordinance for affordable housing
loan transactions to which the City is a party as
set forth in Section 12P.2 and 12Q.2.4 of the
Administrative Code, respectively, the City may
waive the applicability of its minimum compen-
sation or health care accountability require-
ments for nonprofit sponsors of affordable hous-
ing projects upon recommendation by the Director
of the Mayor's Office of Housing or his or her
designee and subject to approval of the Board of
Supervisors by resolution. The provisions setting
forth the project sponsor's agreements shall in-
clude references to compliance monitoring and
enforcement regimes consistent with City law
applicable to each such City Contracting Require-
ment. Such agreement shall clearly indicate the
City agency charged with monitoring compliance
with each requirement provision so imposed, and
notice of such agreement shall be provided to
each such agency by the Mayor's Office of Hous-
ing.

(b) Except as approved in writing by the
Mayor's Office of Housing, and subject to appli-
cable HUD and state regulations, an agreement
by the project sponsor to protect tenants of the
Residential Project as of the date of issuance of
the bonds from eviction due to the financing
based solely on any such tenant's failure to meet
a financing-related income standard at the time
of bond issuance or at any time during the term
of the affordability restrictions.

Supp. No. 5, February 2007

4065

Municipal Finance Law - Housing Bond Approval Policy

Sec. 43.9.5.

(c) Except as approved in writing by the
Mayor's Office of Housing, and subject to appli-
cable HUD and state regulations, an agreement
by the project sponsor to limit annual rent in-
creases for tenants of the Residential Project as
of the date of issuance of the bonds to the
percentage change in area median income for
such year as such amount is determined by
HUD. In the event that HUD does not make such
a determination such amounts shall be deter-
mined by the Mayor's Office of Housing.

(d) A written description of the expected
ownership and management structure of the
Residential Project after bond issuance. Such
description shall include a description of the
experience of the project sponsor in managing
similar affordable residential projects. Such de-
scription shall also include a summary of the
affordable residential project experience of any
nonprofit corporations or other entities the project
sponsor anticipates including in a joint venture
with respect to the Residential Project. The Board
of Supervisors hereby expresses a policy prefer-
ence to support (i) Residential Projects with
proposed management teams that include non-
profit partners based within the City and (ii)
Residential Projects proposed to be managed by
entities that demonstrate substantial experience
with affordable housing projects.

(e) Proof of the delivery of written notice via
mail to all current tenants and posting at the
project location regarding the application for
bond financing and the TEFRA hearing. Such
proof may be provided in the form of a letter
signed by the project sponsor and must be accom-
panied by the notice in the form in which it was
delivered.

(f) A recommendation as to passage of the
TEFRA Resolution from the Director of the
Mayor's Office of Housing or his or her designee.

(g) An agreement by the project sponsor to
reimburse the City and the Agency, as appli-
cable, for staff time, including fees and costs of
the City Attorney's Office, relating to the TEFRA
Resolution and the satisfaction of the policies set
forth in this Article. The City may waive the
applicability of this clause (g) for nonprofit spon-

sors of affordable housing projects upon recom-
mendation by the Director of the Mayor's Office
of Housing or his or her designee and subject to
approval of the Board of Supervisors by resolu-
tion. For projects located within a redevelopment
area, the Agency would be responsible for mak-
ing the recommendation described in the preced-
ing sentence. (Added by Ord. 36-07, File No.
060897, App. 3/9/2007)

SEC. 43.9.5. POLICY REGARDING
OTHER AUTHORITY BONDS.

(a) Prior to the consideration by the Board
of Supervisors of a TEFRA Resolution relating to
any issuance of Other Authority Bonds, the Au-
thority and the project sponsor shall submit the
following information to the City's Office of Pub-
lic Finance:

(1) A written description of the financing
structure proposed in the current transaction,
including anticipated sources and uses.

(2) A written description of the expected
ownership and management structure of the
project after bond issuance. Such description
shall include a description of the experience of
the project sponsor in managing similar projects.
Such description shall also include a summary of
the project-related experience of any nonprofit
corporations or other entities the project sponsor
anticipates including in a joint venture with
respect to the bond-financed project. The Board
of Supervisors hereby expresses a policy prefer-
ence to support (i) projects with proposed man-
agement teams that include nonprofit partners
based within the City and (ii) projects proposed
to be managed by entities that demonstrate
substantial experience with t3^e of project being
financed.

(3) Such other information as City officials
deem necessary to evaluate the proposed bond
financing.

(b) The Office of Public Finance shall re-
view the information described under paragraph
(a) and provide copies to City departments with
expertise relating to the projects in question, to

Supp. No. 5, February 2007

Sec. 43.9.5. San Francisco - Administrative Code 4066

the Mayor's Office of Housing and, if the pro-
posed project is located within a redevelopment
area, the Agency.

(c) After soliciting any and all comments
from the agencies described in paragraph (b), the
Director of Public Finance shall provide its rec-
ommendation as to passage before consideration
of the TEFRA Resolution by the Board of Super-
visors. (Added by Ord. 36-07, File No. 060897,
App. 3/9/2007)

SEC. 43.9.6. APPLICABILITY.

This Chapter shall not be interpreted to
apply to any residential project for which the
sponsor has submitted a request for the intro-
duction of a TEFRA resolution on or before June
1, 2006. (Added by Ord. 36-07, File No. 060897,
App. 3/9/2007)

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CHAPTER 44: ADULT DAY HEALTH CARE PLANNING COUNCIL

Sec. 44.1. Establishment of the Council;

Appointment.
Sec. 44.2. Public Hearing.

Sec. 44.3. Composition of Council.

Sec. 44.4. Terms of Council Members.

Sec. 44.5. President and Vice President of

the Council.

Sec. 44.6. Compensation.

Sec. 44.7. Power and Duties.

Sec. 44.8. Assistance in the Development

of the County Plan.

SEC. 44.1. ESTABLISHMENT OF THE
COUNCIL; APPOINTMENT.

Pursuant to Section 1572.5 of the California
Health and Safety Code, there is hereby estab-
lished an advisory council of 17 members, known
as the Adult Day Health Care Planning Council,
who shall be appointed by the Board of Supervi-
sors. (Added by Ord. 329-81, App. 6/19/81;
amended by Ord. 434-89, App. 12/6/89)

SEC. 44.2. PUBLIC HEARING.

In accordance with Section 1572.7 of the
California Health and Safety Code, there shall
be a public hearing prior to the establishment of
the Council. (Added by Ord. 329-81, App. 6/19/
81)

SEC. 44.3. COMPOSITION OF COUNCIL.

The composition of the Council shall be as
follows:

(a) Nine persons over 55 years of age who
have a demonstrated interest in the special health
and social needs of the elderly and who are
representative of organizations dedicated prima-
rily to the needs of older persons, including those
of low income and racial and ethnic minorities;

(b) One representative of the area agency
on aging designated pursuant to Public Law
94-135; or, if none, a county agency responsible
for services to senior citizens;

(d) A representative of the County Depart-
ment of Human Services, or the equivalent agency;

(e) One representative of the San PVancisco
Medical Society;

(f) One representative of a publicly funded
senior citizen transportation pro:gram;

(g) One representative of a health facility or
organization of health facilities providing acute
or long-term care to the elderly;

(h) A member-at-large who has demon-
strated interest in alternatives to institutional
long-term care; and

(i) A functionally impaired adult member
with a demonstrated interest in community-
based, long-term care needs of the functionally
impaired who is 18 or over, and under 55 years of
age.

In making appointments to the Council, the
Board shall take into consideration any recom-
mendations made by the Mayor with respect to
any of the above categories. (Added by Ord.
329-81, App. 6/19/81; amended by Ord. 434-89,
App. 12/6/89; Ord. 150-00, File No. 000801, App.
6/30/2000)

SEC. 44.4. TERMS OF COUI^CIL
MEMBERS.

The term of each member shall be for three
years. Where a member, prior to the expiration of
his or her term, ceases to retain the status which
qualified him or her for appointment to the
Council, the membership shall terminate and
there shall be a vacancy on the Council. (Added
by Ord. 329-81, App. 6/19/81; amended by Ord.
434-89, App. 12/6/89)

SEC. 44.5. PRESIDENT AND VICE
PRESIDENT OF THE COUNCIL.

Commencing with the date upon which the
first members take office, the Council shall elect

4071

Sec. 44.5. San Francisco - Administrative Code 4072

a president and vice president from among its
members. (Added by Ord. 329-81, App. 6/19/81)

SEC. 44.6. COMPENSATION.

Members of the Council shall serve without
compensation. (Added by Ord. 329-81, App. 6/19/
81)

SEC. 44.7. POWER AND DUTIES.

Pursuant to Section 1572.9 of the California
Health and Safety Code and guidelines adopted
thereunder, the Council shall have the following
powers and duties:

(a) To prepare a City and County plan for
the development of a community-based system of
quality adult day health care;

(b) To hold public hearings on the City and
County plan prior to the plan's adoption; and

(c) To review all applications for adult day
health care licenses within the City and County
and make recommendations to the California
Department of Health Services. (Added by Ord.
329-81, App. 6/19/81)

SEC. 44.8. ASSISTANCE IN THE
DEVELOPMENT OF THE COUNTY PLAN.

The Department of Public Health and the
Commission on the Aging shall assist the Coun-
cil in the development of the City and County
plan for adult day health care. Staff support
shall be provided by the Department of Public
Health. (Added by Ord. 329-81, App. 6/19/81)

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CHAPTER 45: JURY FEES

Sec. 45.1. Title.

Sec. 45.2. Grand Juror Fees.

Sec. 45.3. Trial Juror Fees.

SEC. 45.1. TITLE.

This chapter shall be known as the Jury Fees
Ordinance. (Amended by Ord. 514-84, App. 12/
21/84)

SEC. 45.2. GRAND JUROR FEES.

Grand Jurors shall receive for each day's
attendance, upon a regularly called grand jury
meeting, $11 per meeting and, in addition a
Grand Juror shall be compensated for up to four
committee meetings per month at $11 per meet-
ing.

For the purposes of this section, meetings to
be compensated are defined as follows. A grand
jury meeting shall mean a meeting of the full
grand jury. A committee meeting shall mean a
meeting of the grand jury which is less than the
total number of members of the full grand jury
and designated by the foreperson of the grand
jury to conduct, on behalf of the grand jury, an
investigation of the operations of City and County
government, provided that the committee must
be investigating a matter under its jurisdiction.
(Amended by Ord. 514-84, App. 12/21/84)

SEC. 45.3. TRIAL JUROR FEES.

Trial jurors shall receive for each day's atten-
dance in the Superior and Municipal Courts, in
both civil and criminal cases, the fee of $10. In
addition, trial jurors shall be reimbursed at the
rate of $1.50 for every 10 miles, or fraction
thereof, actually traveled from the residence of
the juror in attending court as a juror, in going
only (Added by Ord. 514-84, App. 12/21/84)

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CHAPTER 46: [RESERVED]

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CHAPTER 47: [RESERVED]

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CHAPTER 48: [RESERVED]

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CHAPTER 49: SECURITY DEPOSITS FOR RESIDENTIAL RENTAL PROPERTY

Sec. 49.1. Security Deposit for Residential

Rental Property Defined.

Sec. 49.2. Payment of Interest on Security

Deposits.

Sec. 49.3. Remedies.

Sec. 49.4. Waiver.

Sec. 49.5. Severability.

SEC. 49.1. SECURITY DEPOSIT FOR
RESIDENTIAL RENTAL PROPERTY
DEFINED.

As provided in Section 1950.5 of the Califor-
nia Civil Code, a security deposit is any pay-
ment, fee, deposit or charge including, but not
limited to, any of the following: (1) The compen-
sation of a landlord for a tenant's default in the
payment of rent; (2) the repair of damages to the
premises caused by the tenant; (3) the cleaning
of the premises upon termination of the tenancy
(Added by Ord. No. 299-83, App. 6/3/83)

SEC. 49.2. PAYMENT OF INTEREST ON
SECURITY DEPOSITS.

(a) A landlord who is subject to the provi-
sions of Section 1950.5 of the California Civil
Code shall pay simple interest on all security
deposits held for at least one year for his/her
tenants; provided, however, that this require-
ment shall not apply where the rent is assisted
or subsidized by any government unit, agency or
authority.

(b) Interest shall begin accruing on Septem-
ber 1, 1983,, or on whatever date the security
deposit is received by the landlord after Septem-
ber 1, 1983, and shall accrue until the tenancy
terminates. Beginning on September 1, 1984, or
on any date thereafter upon which the security
deposit has been held by the landlord for one
year, and annually thereafter on the same month
and day, a tenant shall be given the unpaid
accrued interest in the form of ether a direct

pa5nment or a credit against the tenant's rent.
The landlord shall choose between these two
methods of payment.

(c) Upon termination of tenancy, a tenant
whose security deposit has been held for one year
or more shall be entitled to a direct pro-rata
pajnnent of any unpaid accrued interest no later
than two weeks after the tenant has vacated the
premises; provided, however, that a landlord
may retain any portion of the unpaid accrued
interest, subject to the limitations and require-
ments set forth in Section 1950.5(e) of the Cali-
fornia Civil Code, where the security deposit
alone is insufficient to remedy tenant default in
the payment of rent,, to repair damages to the
premises caused by the tenant, exclusive of ordi-
nary wear and tear, or to clean such premises, if
necessary, upon termination of the tenancy.

(d) Nothing in this Chapter shall preclude a
landlord from exercising his or her discretion in
investing security deposits.

(e) Notwithstanding the provisions of (a)
through (c) above, where a landlord seeks reim-
bursement for the annual Residential Rent Sta-
bilization and Arbitration fee as provided in
Section 37A.6 of this Code, the landlord may
deduct said fee from the next interest payment
owed to the tenant pursuant to this Chapter.

(f) The interest rate for interest payments
required by this Chapter 49 shall be determined
by the Residential Rent Stabilization and Arbi-
tration Board (Rent Board), to be effective on
March 1 of each year.

(1) For March 1, 2003 and prior years, the
Rent Board shall calculate the rate as of the
immediately preceding December 31st according
to the historical Federal Reserve Discount Win-
dow Borrowing Rate, using an average of the
twelve most recent monthly rates (rounded to
the nearest tenth) as posted by the Federal
Reserve on the Federal Reserve Statistical Re-
lease internet site.

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Sec. 49.2. San Francisco - Administrative Code 4120

(2) For March 1, 2004 and future years, the
Rent Board shall calculate the rate as of the
immediately preceding December 31st according
to the Federal Reserve 6-Month Certificate of
Deposit rate, using an average of the twelve
most recent monthly rates (rounded to the near-
est tenth) as posted by the Federal Reserve on
the Federal Reserve Statistical Release internet
site.

(g) The amount of interest due and payable
by the landlord shall be the amount of the
security deposit held by the landlord on the date
the interest pajnnent is due multiplied by either:

(1) The interest rate in effect on the date
the annual payment is due, if the payment is due
under Section 49.2(b); or

(2) The interest rate in effect on the date
the tenant vacates the unit, if the tenant is
entitled to a pro-rata interest payment under
Section 49.2(c). (Added by Ord. No. 299-83, App.
6/3/83; amended by Ord. 278-89, App. 8/2/89;
Ord. 291-90, App. 8/1/90; Ord. 107-02, File No.
020296, App. 7/5/2002; Ord. 90-03, File No. 030221,
App. 6/16/2003; Ord. 82-04, File No. 040101,
App. 5/20/2004)

SEC. 49.3. REMEDIES.

The rights, obligations and remedies of ten-
ants and landlords under this Chapter shall be
as provided in Subsections (f), (g), (h) and (j) of
Section 1950.5 of the California Civil Code. (Added
by Ord. No. 299-83, App. 6/3/83)

SEC. 49.4. WAIVER.

Any waiver by a tenant of rights under this
Chapter shall be void as contrary to public policy.
(Added by Ord. No. 299-83, App. 6/3/83)

SEC. 49.5. SEVERABILITY.

If any provision or clause of this Chapter or
the application thereof to any person or circum-
stance is held to be unconstitutional or to be
otherwise invalid by any court of competent
jurisdiction, such invalidity shall not affect other
Chapter provisions, and clauses of this Chapter
are declared to be severable. (Added by Ord. No.
299-83, App. 6/3/83)

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CHAPTER 49A: RESIDENTIAL TENANT COMMUNICATIONS

Sec. 49A.1.
Sec. 49A.2.
Sec. 49A.3.

SEC. 49A.1.

The Board of Supervisors finds that, particu-
larly with the large proportion of rental units in
the City and County of San Francisco, good
communications among tenants and between
tenants and landlords about these tenancies is
important to the ongoing vitality of the commu-
nity. This Ordinance is intended to encourage
and respect those communicative channels. (Added
by Ord. 9-04, File No. 031701, App. 1/16/2004)

SEC. 49A.3.

(a) The provisions of this Chapter 49A are
not applicable to purely commercial literature
that is no directly related to the building tenan-
cies,

(b) The provisions of this Chapter 49A shall
not be read to limit or replace residential tenant
or landlord rights or remedies found in other
ordinances, or in statutes or Constitutions. (Added
by Ord. 9-04, File No. 031701, App. 1/16/2004)

SEC. 49A.2.

A landlord may not prohibit a tenant who
resides in a building from using common areas in
that building to distribute literature to other
building tenants, including literature distrib-
uted on behalf of a tenants' association or other
tenants' organization, where the literature re-
lates to issues of common interest or concern to
the buildings' tenancies.

(a) Distribution may include hanging or oth-
erwise placing literature on the door of tenant
units, or where that is not possible as a practical
matter then the literature may be placed on the
floor in front of tenant units. Such literature
placed on or in front of the door of a tenant unit
must plainly include the name and telephone
number and address of a distributor that the
affected tenant may contact to opt out of future
doorway distributions of such literature.

(b) The landlord may establish other rea-
sonable requirements as to the time, place, man-
ner, and volume, of such literature distribution,
including a limitation of distribution under this
Chapter to no more than once per calendar
Quarter. (Added by Ord. 9-04, File No. 031701,
App. 1/16/2004)

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CHAPTER 49B: RESIDENTIAL RENTAL UNITS: LOCK REPLACEMENTS BY LANDLORD

WHEN TENANTS VACATE

Sec. 49B.1. Findings.

Sec. 49B.2. Re-Key or Replace Locks.

Sec. 49B.3. Other Remedies.

SEC. 49B.1, FINDINGS.

The Board of Supervisors finds that residen-
tial tenant safety and security in the City and
County of San Francisco is an ongoing concern of
landlords, tenants, and their neighbors. Residen-
tial rental units comprise a significant propor-
tion of housing in the City. The Board further
finds that re-keying or replacing entrance door
locks on any vacated unit would contribute to
safety and security (Added by Ord. 200-07, File
No. 070679, App. 8/10/2007)

SEC. 49B.2. RE-KEY OR REPLACE
LOCKS.

When a residential rental unit is perma-
nently vacated by all tenants, the landlord shall
re-key or replace all door locks that are exclusive
to that unit, including all entrance door locks on
the vacated unit and any locks on separate
entrance doors to any storage and/or garage
facility exclusively used in connection with the
use or occupancy of the vacating tenants. All of
the following conditions apply:

(a) If two or more locks on any one door are
subject to the re-key and replacement provisions
of Section 49B.2 and open by different keys, the
landlord must re-key or replace only one of the
locks on the door.

(b) If the same key opens two or more locks
subject to the re-key and replacement provisions
of Section 49B.2, the landlord must re-key or
replace all locks opened by that key.

(c) The re-key and lock replacement require-
ments of this Chapter do not apply to any door
locks that are provided for use by two or more
units. (Added by Ord. 200-07, File No. 070679,
App. 8/10/2007)

SEC. 49B.3. OTHER REMEDIES.

The provisions of this Chapter 49B shall not
be read to limit or replace residential tenant or
landlord rights or remedies found in other ordi-
nances, or in statutes or Constitutions. (Added
by Ord. 200-07, File No. 070679, App. 8/10/2007)

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CHAPTER 50: NONPROFIT PERFORMING ARTS LOAN PROGILiVM

Article Page

I. GENERAL PROVISIONS 4153

IL LOAN ADMINISTRATION 4163

m. LOAN REQUIREMENTS 4173

IV. MISCELLANEOUS PROVISIONS 4187

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San Francisco - Administrative Code

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ARTICLE I: GENERAL PROVISIONS

Sec. 50.1. Purpose and Findings.

Sec. 50.2. Definitions.

SEC. 50.1. PURPOSE AND FINDINGS.

The Board of Supervisors hereby finds and
declares that nonprofit performing arts organi-
zations are an important cultural element of the
quality of life in San Francisco. The Board also
finds and declares that numerous arts organiza-
tions either operate out of facilities which do not
meet the standards imposed by City and State
fire, building, earthquake and other safety codes
or are unable to acquire adequate operating
space. Many of these arts organizations are
financially unable to maintain their facilities or
make the capital improvements needed to bring
their facilities into compliance with these codes.
This Chapter is therefore enacted in order to
make low-cost loans available to qualified arts
organizations for facilities maintenance, renova-
tion and capital improvements so that they may
carry on their work in facilities which are in full
compliance with all applicable code require-
ments and with all other requirements which
enable the facilities to be used for performing
arts. In addition, this Chapter is enacted in order
that low-cost loans may be made to these arts
organizations for the acquisition or renovation of
adequate operating space, to the extent that
funds are available for this purpose.

The Board of Supervisors expressly finds and
declares that the appropriation and expenditure
of public funds for the purposes set forth above
will serve a public purpose and will benefit the
residents of San Francisco as a whole. Nonprofit
arts organizations which work in substandard
facilities are currently faced with the choice of
either continuing to work in environments that
are unsafe for their members and audiences
alike, or of interrupting their work while they
seek new and adequate facilities. The loans to be
provided under this Chapter will assure that
these arts organizations carry on their efforts in

facilities which enhance the health, safety and
welfare of the artists and of those who come to
view their work. (Added by Ord. 69-84, App.
2/15/84; amended by Ord. 160-91, App. 4/25/91)

SEC. 50.2. DEFINITIONS.

Unless otherwise indicated by the context,
the following definitions shall govern the con-
struction of this Chapter:

(a) "Arts organization" shall mean a non-
profit performing arts organization which is ex-
empt from taxation under Section 501(c)(3) of
the Internal Revenue Code of 1986, as amended,
and which is otherwise eligible for loans under
this Chapter.

(b) "Director" shall mean the Director of the
Grants for the Arts Program.

(c) "Fund" shall mean the Nonprofit Per-
forming Arts Loan Fund, established pursuant
to Administrative Code Section 10.117-41.

(d) "Incipient code violation" shall mean a
physical condition of property which may reason-
ably be expected to deteriorate into a code viola-
tion within two years. (Added by Ord. 69-84,
App. 2/15/84; amended by Ord. 160-91, App.
4/25/91; Ord. 114-06, File No. 051519, App. 6/1/
2006)

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Supp. No. 1, September 2006

ARTICLE II: LOAN ADMINISTRATION

Sec. 50.10. Duties of City and County

Agencies.
Sec. 50.11. Rules and Regulations.
Sec. 50.12. Reports to the Board of

Supervisors.

SEC. 50.10. DUTIES OF CITY AND
COUNTY AGENCIES.

The Director shall be responsible for admin-
istration of all aspects of the Nonprofit Perform-
ing Arts Loan Program. The Director and each
City and County agency assigned responsibili-
ties under this Chapter shall have all such
authority as may be reasonably necessary to
carry out those responsibilities, including the
authority to enter into or amend any agreements
that the Director deems necessary to help admin-
ister the Nonprofit Performing Arts Loan Pro-
gram, including but not limited to, agreements
with loan servicing agencies. While retaining the
overall responsibility for the administration of
the program, the Director may utilize the ser-
vices of the Department of Public Works and the
Fire Department in connection with the code
enforcement aspects of the program, and the
services of the Mayor's Office, Department of
Administrative Services, Department of Build-
ing Inspection and Real Estate Department in
connection with the loan financing aspects of the
program. The Director may also request the
assistance of any other City and County agency
in meeting his or her responsibilities under this
program. With respect to funds previously sent
through interdepartmental work order from
Grants for the Arts to the Non Profit Performing
Arts Loan Program to supplement the original
$500,000 in the Fund, the Director shall have
the discretion to convert such funds for use in
making capital grants. (Added by Ord. 69-84,
App. 2/15/84; Ord. 114-06, File No. 051519, App.
6/1/2006)

SEC. 50.11. RULES AND REGULATIONS.

The Director shall promulgate such rules and
regulations as he or she may deem appropriate

to carry out the provisions of this Chapter, in-
cluding rules and regulations for general pay-
ment schedule adjustments, individualized pay-
ment schedule adjustments and criteria for loan
forgiveness where the Director, in consultation
with the Controller's Office, deems such provi-
sions are necessary in order to recoup outstand-
ing loans or to ensure the ongoing effectiveness
of the program by assisting the economic viabil-
ity of the borrowers and helping to alleviate
debt-related or other financial hardships. Said
rules and regulations shall be developed in con-
sultation with pertinent City and County agen-
cies and any other appropriate organizations
which the Director in his or her discretion may
choose to consult. The Board of Supervisors shall
by resolution approve all such rules and regula-
tions prior to their effective date. A copy of all
such rules and regulations shall be available for
review by the public during regular business
hours in the office of the Director, the office of the
Clerk of the Board of Supervisors, the Fire
Prevention Bureau of the Fire Department, the
Department of Public Works and in every other
office which is assigned responsibilities for car-
rying out this program. Within the first six (6)
months following the effective date of this Ordi-
nance, the Director shall submit, for review and
consideration at a public hearing, a report to the
Board of Supervisors containing the financial
status on each of the loans in the NPALP port-
folio, setting forth (a) any specific criteria for
loan adjustments or forgiveness, (b) a plan of
action for collection of all remaining delinquent
and future loans, and (c) a proposed plan regard-
ing whether NPALP loan recipients may use any
portion of their annual City grant funds for
NPALP loan repayment purposes. (Added by
Ord. 69-84, App. 2/15/84; Ord. 114-06, File No.
051519, App. 6/1/2006)

SEC. 50.12. REPORTS TO THE BOARD
OF SUPERVISORS.

The Director shall submit a semi-annual re-
port to the Board of Supervisors, within 90 days

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Sec. 50.12. San Francisco - Administrative Code 4164

following the completion of each six-month pe-
riod, setting forth a description of all loans made
under this Chapter and an accounting of the uses
made of all monies appropriated to the fund for
the period in question. The Director's report
shall include the fees, interest rates and other
charges levied for each loan. The semi-annual
reports shall also include the following informa-
tion:

(a) For loans subsequent to the date of the
last semi-annual report, the primary purpose of
the loan, the principal amount, interest rate, and
any fees which have been charged on the loan in
excess of regularly scheduled interest payments;
and

(b) For loans outstanding as of the date of
the last semi-annual report, the outstanding
principal balance, the current status of principal
and interest, repayments made, if any, any cur-
rent or potential default under the loan docu-
ments and any potential administrative action to
be taken with respect thereto. (Added by Ord.
69-84, App. 2/15/84; amended by Ord. 160-91,
App. 4/25/91)

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ARTICLE III: LOAN REQUIREMENTS

Sec. 50.20.

Sec. 50.21.
Sec. 50.22.

Sec. 50.23.

Sec. 50.24.

Sec. 50.25.

Sec. 50.26.

Applicant's Plan for Facilities

Maintenance and Capital

Improvements.

Eligibility for Loans.

Maximum Loan Amount;

Factors in Determining Terms

and Conditions.

Loan Fees and Interest Rates;

Deferrals and Waivers.

Security for Loans.

Insurance.

Transfer and Assignment of

Loans.

SEC. 50.20. APPLICANT'S PLAN FOR
FACILITIES MAINTENANCE AND
CAPITAL IMPROVEMENTS.

Each loan applicant shall submit a proposed
plan for facilities maintenance and capital im-
provements or acquisition as part of the loan
application process. The proposed plan shall in-
clude provisions designed to correct all code
violations and incipient code violations of appli-
cable City and State fire, building, earthquake
and other safety codes, and any other provisions
which the Director in his or her discretion may
require. In consultation with the Department of
Public Works, the Fire Department and other
relevant City and County agencies, the Director
shall review the proposed plan to ensure that it
meets all applicable code requirements for the
subject property. (Added by Ord. 69-84, App.
2/15/84)

SEC. 50.21. ELIGIBILITY FOR LOANS.

Each arts organization working in a facility
in San Francisco which has been or is subject to
being cited for code violations or incipient code
violations or that intends to acquire or renovate
a facility in San Francisco shall be eligible for a
loan under this Chapter. Loans under this Chap-
ter shall be available only to arts organizations

with annual budgets of less than $2,500,000, and
only for the repair and maintenance or acquisi-
tion of facilities containing 50 to 600 seats. Each
arts organization shsQl apply for a loan in com-
pliance with all applicable rules and regulations
as promulgated by the Director; shall demon-
strate to the satisfaction of the Director the
ability to repay such a loan, and shall meet all
applicable requirements as set forth in this Chap-
ter.

Priority for loans shall be given to arts orga-
nizations seeking funds to correct life safety code
violations in the facility where they are pres-
ently working or acquisitions necessitated by life
safety code defects and to arts organizations that
have demonstrated compliance with repayment
obligations on prior loans from the City or other
lending institutions. It is the intent of the Board
of Supervisors that the maximum degree of cul-
tural and ethnic diversity be achieved among
loan recipients, to insure that minority, disabled,
lesbian/gay and other arts organizations may
share in the benefits of this program. In admin-
istering this loan program, the Director shall
give priority to this intent and shall insure that
sufficient funds are available to achieve this
purpose. (Added by Ord. 69-84, App. 2/15/84;
amended by Ord. 160-91, App. 4/25/91; Ord.
114-06, File No. 051519, App. 6/1/2006)

SEC. 50.22. MAXIMUM LOAN AMOUNT;
FACTORS IN DETERMINING TERMS
AND CONDITIONS.

The maximum amount of a loan under this
Chapter shall be $200,000. The Director shall
determine the terms and conditions of each loan,
based upon the following factors:

(a) Whether the arts organization owns the
subject property or holds a longterm lease the
life of which exceeds the anticipated repayment
period;

(b) The size, age, value and condition of the
subject property;

4173

Supp. No. 1, September 2006

Sec. 50.22.

San Francisco - Administrative Code

4174

(d) The type of security to be given for the
loan;

(e) The verifiable financial soundness of the
arts organization and its ability to complete the
project for which the loan application is made;

(f) The degree to which an arts organization
can demonstrate community interest in and sup-
port for its artistic programs; and

(g) Any other factors that the Director shall,
by rule and regulation, establish. (Added by Ord.
69-84, App. 2/15/84; amended by Ord. 160-91,
App. 4/25/91; Ord. 280-99, File No. 991737, App.
10/29/99)

SEC. 50.23. LOAN FEES AND INTEREST
RATES; DEFERRALS AND WAIVERS.

A one percent loan fee on the principal of the
loan shall be levied for all loans made under this
Chapter. An interest rate of three percent simple
interest shall also be levied by the Director.

In individual cases of documented hardship,
the Director may either waive pa3mient of the
loan fee or defer it until the termination of the
loan. The Director shall promulgate rules and
regulations which shall be applied in making
determinations of such waivers and deferrals.
(Added by Ord. 69-84, App. 2/15/84)

SEC. 50.24. SECURITY FOR LOANS.

The owner of the subject property shall agree
in writing to all alterations to the property to be
financed by the loan as a prerequisite to granting
a loan to any arts organization which is a tenant
in the subject property. A copy of the arts
organization's lease shall also be filed with the
Director.

Every loan made under this Chapter shall be
fully secured. The Director shall evaluate the
types of security offered by each loan applicant
and shall give preference to those types and
amounts of security that in his or her opinion
will provide the greatest protection for the City's
funds. Further, the Director shall determine that
the liquidation value of any security equals or
exceeds the full value of the loan and the ex-

pected costs of proceeding on such security and
obtaining the proceeds of any collateral. Those
types of security shall include, but are not lim-
ited to:

(a) A deed of trust on the subject property,
naming the City and County as beneficiary;

(b) The guarantee of the owner of the sub-
ject property, in cases where the arts organiza-
tion is the tenant of the property to be improved;

(d) A chattel mortgage or financing state-
ment on equipment or other personal property
owned by the arts organization, (Added by Ord.
69-84, App. 2/15/84; amended by Ord. 160-91,
App. 4/25/91)

SEC. 50.25. INSURANCE.

All loans made under this Chapter shall
provide that the loan applicant shall maintain,
throughout the term of the loan, fire and light-
ning insurance with an extended coverage en-
dorsement and a vandalism and malicious mis-
chief endorsement. Such insurance shall be in an
amount equal to 100 percent of the replacement
cost of the improvements or other work to be
financed by the proceeds of the loan. If a loss
occurs which results in the total destruction of
the subject structure, the insurance policy shall
provide payment to the City in the amount of the
then outstanding loan balance. The Director
shall promulgate regulations, in consultation
with the Risk Manager, to determine the circum-
stances in which any additional insurance re-
quirements may be imposed. (Added by Ord.
69-84, App. 2/15/84)

SEC. 50.26. TRANSFER AND
ASSIGNMENT OF LOANS.

(a) The unpaid amount of any loan shall be
due and payable upon the occurrence of any of
the following events:

(1) Sale or transfer of ownership of the
property, if the arts organization is the owner of
the subject property.

Supp. No. 1, September 2006

4175 Nonprofit Performing Arts Loan Program - Loan Requirements Sec. 50.26.

(2) The vacation of the property by the arts
organization, if the organization is the tenant of
the subject property.

(3) Cessation of activities by the borrower
as a nonprofit performing arts organization,
whether or not the property is transferred or
vacated.

(4) Cessation of use of the property as a
performing arts faciUty

(b) Assignment of the unpaid amount of
such a loan to a purchaser or transferee may be
permitted where the Director determines that
the purchaser or transferee is an arts organiza-
tion which quahfies for a loan under current loan
eligibility standards. The Director shall promul-
gate rules and regulations which shall be applied
in making the determinations required under
this subsection. (Added by Ord. 69-84, App. 2/15/
84; amended by Ord. 160-91, App. 4/25/91)

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Supp. No. 1, September 2006

ARTICLE IV: MISCELLANEOUS PROVISIONS

Sec. 50.30. Severability.

SEC. 50.30. SEVERABILITY.

The provisions of this ordinance shall not
apply to any person, association, corporation or
to any property as to whom or which it is beyond
the power of the City and County to legislate. If
any sentence, clause, section or part of this
ordinance is found to be unconstitutional, illegal
or invalid, such unconstitutionality, illegality, or
invalidity shall affect only such clause, sentence,
section or part of this ordinance, or person or
entity; and shall not affect or impair any of the
remaining provisions, sentences, clauses, sec-
tions or other parts of this ordinance, or its effect
on other persons or entities. It is hereby declared
to be the intention of the Board of Supervisors of
the City and County that this ordinance would
have been adopted had such unconstitutional,
illegal or invalid sentence, clause, section or part
of this ordinance not been included herein; or
had such person or entity been expressly ex-
empted from the application of this ordinance. To
this end the provisions of this ordinance are
severable. (Added by Ord. 69-84, App. 2/15/84)

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CHAPTER 51: VOLUNTARY ARTS CONTRIBUTIONS PROGRAM

Sec. 51.01. Purpose and Findings.

Sec. 51.02. Duties of Tax Collector.

Sec. 51.03. Duties of Mayor.

Sec. 51.04. Expenditures from Fund.

Sec. 51.05. Severability.

SEC. 51.01. PURPOSE AND FINDINGS.

The Board of Supervisors hereby finds and
declares that it is in the public interest to facili-
tate private contributions for the support of the
arts in San Francisco. To the extent that mem-
bers of the public can be encouraged to make
donations to nonprofit arts organizations, the
cultural quality of life in the City will be en-
hanced and the need to support such arts activi-
ties with public funds will be diminished. This
Chapter is therefore enacted to facilitate the
collection and distribution of donations from San
Francisco residents and other interested mem-
bers of the public for equipment acquisition,
facilities maintenance and capital improve-
ments. (Added by Ord. 79-84, App. 2/23/84)

SEC. 51.02. DUTIES OF TAX
COLLECTOR.

(a) The Tax Collector shall develop proce-
dures to solicit contributions from all taxpayers
for nonprofit arts organizations in San Fran-
cisco. Said procedures shall include, but not be
limited to, the inclusion of an explanatory bro-
chure or other material to be mailed in conjunc-
tion with all property tax bills, stating that
contributions for nonprofit arts organizations
may be mailed to the Tax Collector in addition to
payments for property taxes.

(b) The Tax Collector shall record the re-
ceipt of all contributions received and shall de-
posit the same into the Voluntary Arts Contribu-
tions Fund. (Added by Ord. 79-84, App. 2/23/84)

SEC. 51.03. DUTIES OF MAYOR.

(a) The Mayor, or his or her designee, shall
be responsible for the administration of the Vol-
untary Arts Contributions Fund, and shall have
all such authority as may be reasonably neces-
sary to carry out those responsibilities.

(b) The Mayor shall promulgate such rules
and regulations as he or she rriciy deem appro-
priate to carry out the provisions of this Chapter.
Such rules and regulations shall be developed in
consultation with any appropriate agencies or
organizations with which the M.ayor, or his or
her designee, may choose to consult. Such rules
and regulations shall be designed to ensure that
nonprofit arts organizations which meet current
eligibility requirements for the receipt of funds
from the Publicity and Advertising Fund shall
also be eligible for the receipt of funds under this
Chapter.

(c) The Mayor shall submit a semiannual
report to the Board of Supervisors, setting forth
an accounting of the amounts disbursed to each
nonprofit arts organization and the uses for
which said funds were made. (Added by Ord.
79-84, App. 2/23/84; amended by Ord. 287-96,
App. 7/12/96)

SEC. 51.04. EXPENDITURES FROM
FUND.

It is the intent of the Board of Supervisors
that monies deposited into the Voluntary Arts
Contribution Fund shall be made available for
equipment acquisition, facilities maintenance and
capital improvements for the benefit of nonprofit
arts organizations.

In evaluating applications for funds under
this Chapter, the Mayor shall give preference,
where possible, to nonprofit arts organizations
with annual budgets of less than $1,000,000.

It is also the intent of the Board of Supervi-
sors that the maximum degree of cultural and
ethnic diversity be achieved among recipients of

4197

Sec. 51.04. San Francisco - Administrative Code 4198

funds under this Chapter, to insure that minor-
ity, disabled, lesbian/gay and other nonprofit
arts organizations may share in the benefits of
this Fund. In administering the Voluntary Arts
Contribution Fund, the Mayor shall give priority
to this intent and shall insure that sufficient
funds are available to achieve this piirpose. (Added
by Ord. 79-84, App. 2/23/84; amended by Ord.
287-96, App. 7/12/96)

SEC. 51.05. SEVERABILITY.

If any provisions of this ordinance or the
application thereof to any person or circum-
stance is held invalid, the validity of the remain-
der of the ordinance and the applicability of such
provisions to other persons and circumstances
shall not be affected thereby. (Added by Ord.
79-84, App. 2/23/84)

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CHAPTER 52: [RESERVED]

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CHAPTER 53: [RESERVED]

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CHAPTER 54: SOUTHEAST COMMUNITY FACILITY COMMISSION

Sec. 54.1. Findings.

Sec. 54.2. Establishment of Commission;

Appointment; Terms; Meetings;

Compensation; Executive

Director.
Sec. 54.3. Powers and Duties of the

Commission.
Sec. 54.4. Surplus Funds.

SEC. 54.1. FINDINGS.

The Board of Supervisors finds and declares
that it is necessary and essential to the well-
being of the City to establish a Commission to
review and provide guidance for the operations
of the Southeast Community Facility.

The Commission will foster the following
public purposes and municipal affairs of the
City:

(a) The full and gainful employment of resi-
dents of chronically economically depressed ar-
eas of the City;

(b) The progressive development of market-
able job skills for untrained and undertrained
City residents;

(d) The creation and expansion of opportu-
nities for providing day care services at a low and
reasonable cost to parents;

(e) The expansion of opportunities for spe-
cial community services for senior citizens;

(f) The overall improvement of the general
economic prosperity, health, safety and welfare
of residents of chronically economically de-
pressed areas of the City.

The Board of Supervisors further finds and
declares that the Bayview-Hunters Point com-
munity, as defined in Section 54.2(b) of this
Chapter, is an historically disadvantaged and
economically depressed part of the City and that
guidance by and participation of persons living

or working in that area are essential to the
successful operations of the Southeast Commu-
nity Facility and the attainment of the goals and
pui-poses mentioned above. (Ord. 438-87, App.
11/12/87)

SEC. 54.2. ESTABLISHMENT OF
COMMISSION; APPOINTMENT; TERMS;
MEETINGS; COMPENSATION;
EXECUTIVE DIRECTOR.

(a) There is established a Commission to be
known as the Southeast Community Facility
Commission consisting of seven imembers. Com-
mission members shall be appointed by and
serve at the pleasure of the Mayor. Unless the
Mayor determines that it is otherwise impracti-
cable, persons appointed to serve as members of
the Commission shall either reside or work in
the Bayview-Hunters Point community, as de-
fined in Section 54.2(b) of this Chapter.

(b) For purposes of this Chapter, the Bay-
view-Hunters Point community is defined as the
area south of the southern curb line of Army
Street, east of the eastern curb line of the James
Lick Freeway (also known as U.S. Route 101),
north of the city and county boundary line shared
with San Mateo County, and west of San Fran-
cisco Bay.

(c) Members will be appointed for a term of
office of four years, except that all of the vacan-
cies occurring during a term will be filled by an
appointment made by the Mayor for the unex-
pired term. Each vacancy shall be filled within
30 days of the occurrence of the vacancy.

(d) A president shall be selected by majority
vote of the members of the Commission. The
president shall serve for a term of two years and
shall not serve more than two consecutive terms.

(e) The date, place and time of meeting
shall be determined by rules adopted by the
Commission; provided, however, that the Com-
mission will hold a regular meeting not less than
once each month.

4223

Sec. 54.2.

San Francisco - Administrative Code

4224

(f) Subject to the budgetary and fiscal re-
quirements of the Charter, each member shall be
paid $50 per Commission meeting or committee
meeting attended. Total compensation shall not
exceed $100 per month.

(g) Any member who misses three regularly
scheduled meetings of the Commission in any
12-month period without the express approval of
the Commission given at a regularly scheduled
meeting will be deemed to have resigned from
the Commission.

(h) The Commission shall appoint an Execu-
tive Director, who shall serve at the pleasure of
the Commission and shall not be subject to the
civil service provisions of the Charter. The Ex-
ecutive Director shall possess the qualifications
and experience essential to the administration of
the Southeast Community Facility. The Execu-
tive Director shall be responsible for the enforce-
ment of the rules and regulations of the Commis-
sion and shall manage the daily activities of the
Southeast Community Facility not undertaken
by lessees. (Ord. 438-87, App. 11/12/87; amended
by Ord. 407-89, App. .11/8/89; Ord. 287-96, App.
7/12/96; Ord. 108-00, File No. 000539, App. 5/26/
2000)

SEC. 54.3. POWERS AND DUTIES OF
THE COMMISSION.

The powers and duties of the Commission
shall be limited to those necessary to:

(a) Provide guidance necessary for the es-
tablishment, retention and enhancement of busi-
ness activities of the greenhouse, educational
and job skills centers, child care and senior
activities centers, and any other appropriate
activities at the Southeast Community Facility;

(b) Provide guidance to ensure that opera-
tion of the facility enhances opportunities first
for the benefit of the residents of the Bayview-
Hunters Point community and thereafter for the
benefit of all other residents of the City and
County of San Francisco to engage in employ-
ment training and educational activities;

(c) Review and provide guidance on budget
matters necessarily affecting the development
and improvement of operations of the green-

house, educational and job skills centers, child
care and senior activities centers, and any other
appropriate activities at the Southeast Commu-
nity Facility;

(d) Review and provide guidance regarding
proposed lessees and agreements with qualified
private, community, public assistance and horti-
cultural organizations;

(e) Provide policy guidance necessary to en-
sure compliance with all relevant municipal.
State and federal laws and regulations, includ-
ing, but not limited to, construction grant agree-
ments, regulations and orders;

(f) Review and provide guidance on a regu-
lar basis on budgetary matters related to the
operation and maintenance expenses at the South-
east Community Facility. (Ord. 438-87, App. 11/
12/87)

SEC. 54.4. SURPLUS FUNDS.

(a) In accordance with State and federal
grant agreements, regulations and orders, all
proceeds from the leasing of the Southeast Com-
munity Facility shall be used to defray City and
County costs of operating and administering the
facilities.

(b) Proceeds from the leasing of the facili-
ties that exceed the costs of operating and ad-
ministering the facilities, as calculated at the
end of the fiscal year, shall be known as "surplus
funds."

(c) Subject to the budgetary and fiscal re-
quirements of the Charter, the Commission may
allocate surplus funds accrued during the prior
fiscal year for certain uses related to the opera-
tions and activities of the Southeast Community
Facility.

(d) Surplus funds may be allocated for the
following purposes:

(1) Scholarships first for residents of the
Bayview-Hunters Point community and thereaf-
ter for all other residents of the City and County
of San Francisco to attend classes and other
educational activities at the Southeast Commu-
nity Facility or other accredited institutions of
education;

4225 Southeast Coniniunity Facility Commission Sec. 54.4.

(2) Scholarships first for children residing
in the Baj^iew-Hunters Point community and
thereafter for all other resident children of the
City and County of San Francisco to attend child
care centers at the Southeast Community Facil-
ity or other State-licensed child care providers;

(3) Supplementary funding for job training
programs and activities at the Southeast Com-
munity Facility;

(4) Supplementary funding for community
agencies which address the needs as identified in
Section 54.1., Findings.

(e) There is hereby established a reserve
fund to consist of 10 percent of each year's
budget surplus for the facility, as available, to be
used for the purpose of facility maintenance only
This reserve fund will be maintained for a five-
year period, and the use of this reserve fund will
be reviewed at the termination of the five-year
period. (Ord. 438-87, App. 11/12/87; amended by
Ord. 287-96, App. 7/12/96)

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CHAPTER 55: [RESERVED]

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CHAPTER 56: DEVELOPMENT AGREEMENTS

Sec. 56.1. Findings.

Sec. 56.2. Purpose and Applicability.

Sec. 56.3. Definitions.

Sec. 56.4. Filing of Application; Forms;

Initial Notice and Hearing.
Sec. 56.5. Form of Agreement.

Sec. 56.6. Signatories to the Development

Agreement.
Sec. 56.7. Contents of Development

Agreement.
Sec. 56.8. Notice.

Sec. 56.9. Rules Governing Conduct of

Hearing.
Sec. 56.10. Development Agreement

Negotiation Report and

Documents.
Sec. 56.11. Collateral Agreements.
Sec. 56.12. Irregularity in Proceedings.
Sec. 56.13. Determination by Commission.

Sec. 56.14. Decision by Board of

Supervisors.
Sec. 56.15. Amendment and Termination of

an Executed Development

Agreement by Mutual Consent.
Sec. 56.16. Recordation of Development

Agreements Amendment or

Termination.

Sec. 56.17. Periodic Review.

Sec. 56.18. Modification or Termination.

Sec. 56.19. Limitation on Actions.

Sec. 56.20. Fee.

SEC. 56.1. FINDINGS.

The Board of Supervisors ("Board") concurs
with the State Legislature in finding that:

(a) The lack of certainty in the approval of
development projects can result in a waste of
resources, escalate the cost of housing and other
development to the consumer, and discourage
investment in and commitment to comprehen-

sive planning and development of infrastructure
and public facilities which would make maxi-
mum efficient utilization of resources at the least
economic cost to the public.

(b) Assurance to the applicant/developer for
a development project that upon approval of the
project, the applicantydeveloper miay proceed with
the project in accordance with specified policies,
rules and regulations, and subject to conditions
of approval, will strengthen the public planning
process, encourage private participation in com-
prehensive planning, and reduce the economic
costs of development. (Added by Ord. 372-88,
App. 8/10/88)

SEC. 56.2. PURPOSE AND
APPLICABILITY.

(a) The purpose of this Chapter is to
strengthen the public planning process by en-
couraging private participation in the achieve-
ment of comprehensive planning goals and re-
ducing the economic costs of development. A
development agreement reduces the risks asso-
ciated with development, thereby enhancing the
City's ability to obtain public benefits beyond
those achievable through existing ordinances
and regulations. To accomplish this purpose the
procedures, requirements and other provisions
of this Chapter are necessary to promote orderly
growth and development (such £ls, where appli-
cable and appropriate, provision of housing, em-
ployment and small business opportunities to all
segments of the community including low in-
come persons, minorities and women), to ensure
provision for adequate public services and facili-
ties at the least economic cost to the public, and
to ensure community participation in determin-
ing an equitable distribution of the benefits and
costs associated with development.

(b) Such agreem.ents shall only be used for
(1) affordable housing developments or (2) large
multi-phase and/or mixed-use developments in-
volving public improvements, seirvices, or facili-

4247

Sec. 56.2.

San Francisco - Administrative Code

4248

ties installations, requiring several years to com-
plete, as defined below in Section 56.3, or a
housing development with a minimum of 1,000
units, as defined below in Section 56.3. (Added
by Ord. 372-88, App. 8/10/88; amended by Ord.
67-05, File No. 041748, App. 4/15/2005)

SEC. 56.3. DEFINITIONS.

The following definitions shall apply for pur-
poses of this Chapter:

(a) "Affordable housing development" shall
mean for purposes of Section 56.2(b)(1), any
housing development which has a minimum of
30 percent of its units affordable to low income
households, and a total of 60 percent of its units
affordable to households, as defined by the U.S.
Census, whose immediate household income does
not exceed 120 percent of the median household
income for the San Francisco Primary Metropoli-
tan Statistical Area, with the remaining 40 per-
cent of its units unrestricted as to affordability.
For purposes of this definition of "affordable
housing development," "low income" shall mean
the income of households, as defined by the U.S.
Census whose immediate household income does
not exceed 80 percent of the median household
income for the San Francisco Primary Metropoli-
tan Statistical Area. "Median household income"
for the San Francisco Primary Metropolitan Sta-
tistical Area shall be as determined by the U.S.
Department of Housing and Urban Development
and adjusted according to the determination of
that Department and published from time to
time. In the event that such income determina-
tions are no longer published by the Department
of Housing and Urban Development, median
household income shall mean the median gross
yearly income of a household in the City and
County of San Francisco, adjusted for household
size, as published periodically by the California
Department of Housing and Community Devel-
opment. Such affordable housing development
may include neighborhood commercial facilities
which are physically and financially an integral
part of the affordable housing project and which
will provide services to local residents.

(b) "Applicant/Developer" shall mean a per-
son or entity who has legal or equitable interest
in the real property which is the subject of the
proposed or executed development agreement for
an "affordable housing development" or a "large
multi-phase and/or mixed-use development," as
those terms are defined herein, or such person's
or entity's authorized agent or successor in in-
terest; provided, however, that an entity which is
subject to the requirements of City Planning
Code Section 304.5 relating to institutional mas-
ter plans does not qualify as an applicant for a
development agreement.

(c) "Collateral agreement" shall mean a writ-
ten contract entered into by the applicant/
developer and/or governmental agencies with
other entities (including, but not limited to,
community coalitions) for the purpose of having
said entities provide for and implement social,
economic, or environmental benefits or pro-
grams; provided, however, that such term does
not include agreements between the applicant/
developer or governmental agencies and (1) con-
struction contractors and subcontractors, (2) con-
struction managers, (3) material suppliers, and
(4) architects, engineers, and lawyers for custom-
ary architectural, engineering or legal services.

(d) "Commission" shall mean the City Plan-
ning Commission.

(e) "Director" shall mean the Director of
Planning.

(f) "Housing development with a minimum
of 1,000 units" shall mean a proposed residential
development project which: (1) is on a site which
exceeds two and one-half acres in area, (2) in-
cludes two or more buildings to be constructed on
the site, and (3) includes a proposal for construct-
ing or participating in providing, either off-site
or on-site, public improvements, facilities, or
services beyond those achievable through exist-
ing ordinances and regulations.

(g) "Large multi-phase and/or mixed-use de-
velopment" shall mean a proposed development
project which: (1) is on a site which exceeds five
acres in area, (2) includes two or more buildings
to be constructed sequentially on the site, and (3)
includes a proposal for constructing or partici-

4249

Development Agreements

Sec. 56.6.

pating in providing, either ofF-site or on-site,
public improvements, facilities, or services be-
yond those achievable through existing ordi-
nances and regulations.

(h) "Material modification" shall mean any
proposed amendment or modification to either a
proposed development agreement approved by
the Commission, or a previously executed devel-
opment agreement, which amendment or modi-
fication is otherwise required by the terms of the
development agreement, which changes any pro-
vision thereof regarding the following: (1) dura-
tion of the agreement; (2) permitted uses of the
subject property; (3) density or intensity of the
permitted uses; (4) location, height or size of any
structures, buildings, or major features; (5) res-
ervation or dedication of land; (6) any conditions,
terms, restrictions and requirements relating to
subsequent discretionary actions as to design,
improvements, construction standards and speci-
fications; (7) any other condition or covenant
relating to the financing or phasing of the devel-
opment which substantially modifies the use of
the property, the phasing of the development, or
the consideration exchanged between the parties
as recited in the proposed development agree-
ment; (8) the type, number, affordability level,
and/or tenure of any proposed affordable housing
as well as any change as to performance of such
public benefits, including but not limited to tim-
ing, phasing, method of performance or parties
involved; or (9) any other terms or conditions of
the development agreement if the development
agreement provides that amendment of said speci-
fied term or condition would be a material modi-
fication.

(i) "Minor modification" shall mean any
amendment or modification to the development
agreement which relates to any provision not
deemed to be a "material modification." (Added
by Ord. 372-88, App. 8/10/88; amended by Ord.
67-05, File No. 041748, App. 4/15/2005)

SEC. 56.4. FILING OF APPLICATION;
FORMS; INITIAL NOTICE AND HEARING.

(a) The Director may prescribe the form of
the application for the preparation and imple-
mentation of development agreements.

(b) The applicant must list on the applica-
tion the anticipated public benefits which would
exceed those required by existing ordinances and
regulations. The public benefits ultimately pro-
vided by an approved development agreement
may differ from those initially identified by the
applicant/developer. The Director may require
an applicant/developer to submit such additional
information and supporting data as the Director
considers necessary to process the application;
provided, however, that the Director shall not
require the applicant/developer to submit, as
part of the application, special studies or analy-
ses which the Director would customarily obtain
through the environraental review process.

(c) The Director shall endorse the applica-
tion the date it is received. If the Director finds
that the application is complete, the Director
shall (1) accept the application for filing, (2)
publish notice in the official newspaper of accep-
tance of said application, (3) make the applica-
tion publicly available, and (4) schedule a public
hearing before the Commission within 30 days
following receipt of a completed application. At
said public hearing, the Director shall make a
recommendation with respect to the fee to be
paid by the applicant/developer as set forth in
Section 56.20(b). (Added by Ord. 372-88, App.
8/10/88)

SEC. 56.5. FORM OF AGREEMENT.

A proposed development agreement, and any
modifications or amendments thereto, must be
approved as to form by the City Attorney prior to
anj'^ action by the Director, Commission or Board
of Supervisors. (Added by Ord. 372-88, App.
8/10/88)

SEC. 56.6. SIGNATORIES TO THE
DEVELOPMENT AGREEMENT.

(a) Applicant. Only an applicant/devel-
oper, as that term is defined in Section 56.3, may
file an application to enter into a development
agreement.

(b) Governmental Agencies. In addition
to the City and County of San Francisco and the
applicant/developer, any federal, State or local
governmental agency or body may be included as

Sec. 56.6.

San Francisco - Administrative Code

4250

a party or signatory to any development agree-
ment. (Added by Ord. 372-88, App. 8/10/88)

SEC. 56.7. CONTENTS OF
DEVELOPMENT AGREEMENT.

(a) Mandatory Contents. A development
agreement, by its express terms or by reference
to other documents, shall specify (1) the duration
of the agreement, (2), the permitted uses of the
property, (3) the density or intensity of use, (4)
the maximum height and size of proposed build-
ings, (5) the provisions for reservation or dedica-
tion of land for public purposes, (6) for any
project proposing housing, the number, type,
afFordability and tenure of such housing, (7) the
public benefits which would exceed those re-
quired by existing ordinances and regulations,
and (8) nondiscrimination and affirmative action
provisions as provided in subsection (c) below.

(b) Permitted Contents. The develop-
ment agreement may (1) include conditions, terms,
restrictions, and requirements for subsequent
discretionary actions, (2) provide that construc-
tion shall be commenced within a specified time
and that the project or any phase thereof be
completed within a specified time, (3) include
terms and conditions relating to applicant/
developer and/or City financing or necessary
public facilities and subsequent reimbursement
by other private party beneficiaries, (4) require
compliance with specified terms or conditions of
any collateral agreements pursuant to Section
56.11, and (5) include any other terms or condi-
tions deemed appropriate in light of the facts and
circumstances.

( 1 ) Nondiscrimination Provisions of the

Development Agreement. The development
agreement shall include provisions obligating
the applicant/developer not to discriminate on
the grounds, or because of, race, color, creed,
national origin, ancestry, age, sex, sexual orien-
tation, disability or Acquired Immune Deficiency
Syndrome or AIDS Related Condition (AIDS/
ARC), against any employee of, or applicant for
employment with the applicant/developer or

against any bidder or contractor for public works
or improvements, or for a franchise, concession
or lease of property, or for goods or services or
supplies to be purchased by applicant/developer.
The development agreement shall require that a
similar provision be included in all subordinate
agreements let, awarded, negotiated or entered
into by the applicant/developer for the purpose of
implementing the development agreement.

(2) Affirmative Action Program. The de-
velopment agreement shall include a detailed
affirmative action and employment and training
program (including without limitation, programs
relating to women, minority and locally-owned
business enterprises), containing goals and time-
tables and a program for implementation of the
affirmative action program. For example, pro-
grams such as the following may be included:

(i) Apprenticeship where approved pro-
grams are functioning, and other on-the-job train-
ing for a nonapprenticeable occupation;

(ii) Classroom preparation for the job when
not apprenticeable;

(iii) Preapprenticeship education and prepa-
ration;

(iv) Upgrading training and opportunities;

(v) The entry of qualified women and minor-
ity journejmien into the industry; and

(vi) Encouraging the use of contractors, sub-
contractors and suppliers of all ethnic groups,
and encouraging the full and equitable partici-
pation of minority and women business enter-
prises and local businesses (as defined in Section
12D of this Code and implementing regulations)
in the provision of goods and services on a
contractual basis.

(3) Reporting and Monitoring. The de-
velopment agreement shall specify a reporting
and monitoring process to ensure compliance
with the non-discrimination and affirmative ac-
tion requirements. The reporting and monitoring
process shall include, but not be limited to,
requirements that:

(i) A compliance monitor who is not an
agent or employee of the applicant/developer be
designated to report to the Director regarding

4251

Development Agreements

Sec. 56.9.

the applicant/developer's compliance with the
nondiscrimination and affirmative action require-
ments;

(ii) The appHcant/developer permit the com-
phance monitor or the Director or his designee
reasonable access to pertinent employment and
contracting records, and other pertinent data
and records, as specified in the Development
Agreement for the purpose of ascertaining com-
pliance with the nondiscrimination and affirma-
tive action provisions of the development agree-
ment;

(iii) The applicant/developer annually file a
compliance report with the compliance monitor
and the Director detailing performance pursuant
to its affirmative action program, and the com-
pliance monitor annually reports its findings to
the Director; such reports shall be included in
and subject to the periodic review procedure set
forth in Sec. 56.17. (Added by Ord. 372-88, App.
8/10/88)

SEC. 56.8. NOTICE.

The Director shall give notice of intention to
consider adoption, amendment, modification, or
termination of a development agreement for each
public hearing required to be held by the Com-
mission under this Chapter. The Clerk of the
Board of Supervisors shall give such notice for
each public hearing required to be held by the
Board of Supervisors. Such notices shall be in
addition to any other notice as may be required
by law for other actions to be considered concur-
rently with the development agreement.

(a) Form of Notice.

(1) The time and place of the hearing;

(2) A general summary of the terms of the
proposed development agreement or amendment
to be considered, including a general description
of the area affected, and the public benefits to be
provided; and

(3) Other information which the Director, or
Clerk of the Board of Supervisors, considers
necessary or desirable.

(b) Time and Manner of Notice.

(1) Publication and Mailing. Notice of
hearing shall be provided in the same manner as
that required in City Planning Code Section
306.3 for amendments to that Code which would
reclassify land; where mailed notice is otherwise
required by law for other actions to be considered
concurrently with the development agreement,
notice of a public hearing before the Commission
on the development agreement shall be included
on the next Commission calendar to be mailed
following the date of publication of notice in the
official newspaper.

(2) Notice to Local Agencies. Notice of
the hearing shall also be mailed at least 10 days
prior to the hearing to any local public agency
expected to provide water, transit, sewage, streets,
schools, or other essential facilities or services to
the project, whose ability to provide those facili-
ties and services may be significantly affected by
the development agreement.

(c) Failure to Receive Notice. The failure
of any person to receive notice required by law
does not affect the authority of the City and
County of San Francisco to enter into a develop-
ment agreement. (Added by Ord. 372-88, App.
8/10/88; amended by Ord. 59-91, App. 2/27/91)

SEC. 56.9. RULES GOVERNING
CONDUCT OF HEARING.

The Commission's public hearing on the pro-
posed development agreement shall be con-
ducted in accordance with the procedure for the
conduct of reclassification hearings as provided
in Subsections (b) and (c) of Section 306.4 of the
City Planning Code. Such public hearing on the
proposed development agreement shall be held
prior to or concurrently with the public hearing
for consideration of any other Commission action
deemed necessary to the approval or implemen-
tation of the proposed development agi'eement,
unless the Commission determines, after a duly
noticed public hearing pursuant to Section 56.8,
that proceeding in a different manner would
fur1:her the public interest; provided, however,
that any required action under the California

Sec. 56.9.

San Francisco - Administrative Code

4252

Environmental Quality Act shall not be affected
by this Section. (Added by Ord. 372-88, App.
8/10/88)

SEC. 56.10. DEVELOPMENT
AGREEMENT NEGOTIATION REPORT
AND DOCUMENTS.

(a) Report. The Director shall prepare a
report on development agreement negotiations
between the applicant and the City and County
of San Francisco (City), which report shall be
distributed to the Commission and Board of
Supervisors, and shall be available for public
review 20 days prior to the first public hearing
on the proposed development agreement. Said
report shall include, for each negotiation session
between the applicant and the City: (1) an atten-
dance list; (2) a summary of the topics discussed;
and (3) a notation as to any terms and conditions
of the development agreement agreed upon be-
tween the applicant and the City.

(b) Documents. The Director shall (1) main-
tain a file containing documents exchanged be-
tween the applicant/developer and the City's
executive offices and departments; and (2) en-
deavor to obtain copies and maintain a list of all
correspondence which executive offices and de-
partments received from and sent to the public
relating to the development agreement. The Di-
rector shall make said documents and the corre-
spondence list available for public review 20
days prior to the first public hearing on the
proposed development agreement.

(c) Update of Report, Documents, and
Correspondence List. The Director shall up-
date the negotiation session report and the cor-
respondence list, and continue to maintain a file
of documents exchanged between the applicant/
developer and the City until a development agree-
ment is finally approved. The Director shall
make the updated report, correspondence list,
and documents available to the public at least
five working days before each public hearing on
the proposed development agreement.

(d) Remedies. No action, inaction or recom-
mendation regarding the proposed development
agreement shall be held void or invalid or be set

aside by a court by reason of any error, irregu-
larity, informality, neglect or omission ("error")
which may occur with respect to City compliance
with this Section 56.10. This section is not in-
tended to affect rights and remedies with respect
to public records otherwise provided by law.
(Added by Ord. 372-88, App. 8/10/88)

SEC. 56.11. COLLATERAL
AGREEMENTS.

(a) Filing. In order to qualify for consider-
ation under the provisions of this section, the
party to the collateral agreement seeking such
consideration must: (1) submit a copy of the
executed collateral agreement to the Director, (2)
identify the specific terms and conditions of said
collateral agreement which said party believes
are necessary to achieve the public purposes
sought to be achieved by the City and County
through the development agreement process, and
(3) provide contemporaneous notice to any other
party or parties to the collateral agreement or
the development agreement that a request for
consideration pursuant to this section was filed.
The Director shall forward copies of all collateral
agreements received to the City Attorney's Office
for review.

(b) Recommendation of the Director
Prior to the First Public Hearing on the
Proposed Development Agreement.

(1) The Director is obligated to consider and
make a recommendation only as to those collat-
eral agreements which satisfy the provisions of
Section 56.11(a) above, and which are received
by the Director within seven days after the date
of publication of notice of the first hearing on the
proposed development agreement. The Director
shall consider those collateral agreements which
are on the list provided pursuant to Section
56.11(d) below.

(2) With respect to collateral agreements
received pursuant to the provisions set forth
above, the Director shall prepare a report to the
Commission on said collateral agreements. If the
Director finds that applicant compliance with
certain specified terms or conditions of said col-
lateral agreements is necessary to achieve the

4253

Development Agreements

Sec. 56.13.

public purposes sought by the City through the
development agreement process, then the Direc-
tor shall recommend that such terms or condi-
tions be incorporated into the proposed develop-
ment agreement. If the Director recommends
incorporation into the development agreement of
any terms or conditions of any collateral agree-
ments, then the Director's report shall also note
whether the other party or parties to the collat-
eral agreement or proposed development agree-
ment objects, and the basis for that objection.

(3) The provisions of this section are not
intended to limit the power of the Commission or
the Board to amend the proposed development
agreement to incorporate terms or conditions of
collateral agreements,

(1) The Director shall consider and make a
recommendation as to those collateral agree-
ments which satisfy the provisions of Section
56.11(a) above, and which are received 30 days
prior to the date scheduled for periodic review, as
determined pursuant to Section 56.17(a). The
Director shall consider those collateral agree-
ments which are on the list provided pursuant to
Section 56.11 (d) below.

(2) With respect to collateral agreements
received pursuant to the provisions set forth
above, the Director shall prepare a report to the
Commission on said collateral agreements. The
Director shall also consult with the applicant/
developer concerning said collateral agreements.
If the Director finds that applicant/developer
compliance with certain specified terms or con-
ditions of said collateral agreements would sub-
stantially further attainment of the public pur-
poses which were recited as inducement for
entering into the development agreement, then
the Director shall recommend that the Commis-
sion propose an amendment to the development
agreement to incorporate said terms and condi-
tions. If the Director recommends proposal of an
amendment to incorporate into the development
agreement specified terms or conditions of any
collateral agreements, then the Director's report

shall also note whether the other party or parties
to the collateral agreement or development agree-
ment objects, and the basis for that objection.

(d) Applicant/Developer Disclosure of
Collateral Agreements.

(1) At least 21 days prior to the first hear-
ing on the proposed development agreement, the
applicant/developer shall provide the Director,
for the Director's consideration, a list of all
collateral agreements as defined in Section 56.3(c)
that have been entered into by the applicant/
developer.

(2) At least 30 days prior to the date sched-
uled for periodic review pursuant to Section
56.17(a), the applicant/developer shall provide
the Director, for the Director's consideration, an
update to the list prepared pursuant to Subsec-
tion (d)(1) above, or any previous list prepared
pursuant to this Subsection (d)(2), as applicable,
identifying all such collateral agreements en-
tered into subsequent to the date of the first list,
or subsequent updates, as appropriate. (Added
by Ord. 372-88, App. 8/10/88)

SEC. 56.12. IRREGULARITY IN
PROCEEDINGS.

No action, inaction or recommendation re-
garding the proposed development agreement or
anj?- proposed amendment shall be held void or
invalid or be set aside by a court by reason of any
error, irregularity, informality, neglect or omis-
sion ("error") as to any matter pertaining to the
application, notice, finding, record, hearing, re-
port, summary, recommendation, or any matters
of procedure whatever unless after an examina-
tion of the entire record, the court is of the
opinion that the error complained of was preju-
dicial and that by reason of the error the com-
plaining party sustained and suffered substan-
tial injury, and that a different result would have
been probable if the error had not occurred or
existed. There is no presumption that error is
prejudicial or that injury resulted if error is
shown. (Added by Ord. 372-88, App. 8/10/88)

SEC. 56.13. DETERMINATION BY
COMMISSION.

(a) Public Hearing. The Commission shall
hold a public hearing to consider and act on a
proposed development agreement after provid-
ing notice as required under Section 56.8.

Sec. 56.13.

San Francisco - Administrative Code

4254

(b) Recommendations to Board of Su-
pervisors. Following the public hearing, the
Commission may approve or disapprove the pro-
posed development agreement, or may modify
the proposed development agreement as it deter-
mines appropriate. The Commission shall make
its final recommendation to the Board of Super-
visors which shall include the Commission's de-
termination of whether the development agree-
ment proposed is consistent with the objectives,
policies, general land uses and programs speci-
fied in the general plan and any applicable area
or specific plan, and the priority policies enumer-
ated in City Planning Code Section 101.1. The
decision of the Commission shall be rendered
within 90 days from the date of conclusion of the
hearing; failure of the Commission to act within
the prescribed time shall be deemed to constitute
disapproval. (Added by Ord. 372-88, App. 8/10/
88)

SEC. 56.14. DECISION BY BOARD OF
SUPERVISORS.

(a) Action by Board of Supervisors. The

Board of Supervisors shall hold a public hearing
on the proposed development agreement ap-
proved by the Commission. After the Board of
Supervisors completes its public hearing, it may
approve or disapprove the proposed development
agreement recommended by the Commission. If
the Commission disapproves the proposed devel-
opment agreement, that decision shall be final
unless the applicant/developer appeals the
Commission's determination to the Board of Su-
pervisors. The applicant/developer may appeal
by filing a letter with the Clerk of the Board of
Supervisors within 10 days following the Com-
mission's disapproval of the proposed develop-
ment agreement. The procedures for the Board's
hearing and decision shall be the same as those
set forth in City Planning Code Sections 308.1(c)
and 308.1(d) with respect to an appeal of a
Commission disapproval of a City Planning Code
amendment initiated by application of one or
more interested property owners.

(b) Material Modification of the
Commission's Recommended Development
Agreement. The Board of Supervisors may adopt

a motion proposing a material modification to a
development agreement recommended by the
Commission, as defined in Section 56.3 herein.
In such event, the material modification must be
referred back to the Commission for report and
recommendation pursuant to the provisions of
Subdivision (c) below. However, if the Commis-
sion previously considered and specifically re-
jected the proposed material modification, then
such modification need not be referred back to
the Commission. The Board of Supervisors may
adopt any minor modification to the proposed
development agreement recommended by the
Commission which it determines appropriate
without referring the proposal back to the Com-
mission.

(c) Consideration of Material Modifica-
tion By the Commission. The Commission
shall hold a public hearing and render a decision
on any proposed material modification for-
warded to the Commission by motion of the
Board within 90 days from the date of referral of
the proposed modification by the Board to the
Commission; provided, however, if the Commis-
sion has not acted upon and returned the pro-
posed material modification within such 90 day
period, the proposal shall be deemed disap-
proved by the Commission unless the Board, by
resolution, extends the prescribed time within
which the Commission is to render its decision.

(d) Effect of Commission Action on Pro-
posed Material Modification. The Board of
Supervisors shall hold public hearing to consider
the Commission's action on the proposed mate-
rial modification. If the Commission approves
the Board's proposed material modification, the
Board may adopt the modification to the agree-
ment by majority vote. If the Commission disap-
proves the Board's proposed material modifica-
tion, or has previously specifically rejected the
proposed material modification, then the Board
may adopt the material modification to the de-
velopment agreement by a majority vote, unless
said modification would reclassify property or
would establish, abolish, or modify a setback
line, in which case the modification may be
adopted by the Board only by a vote of not less
than of all of the members of said Board.

4255

Development Agreements

Sec. 56.16.

(e) Consistency With General and Spe-
cific Plans. The Board of Supervisors may not
approve the development agreement unless it
receives the Commission's determination that
the agreement is consistent with the Master
Plan, any applicable area or specific plan and the
Priority Policies enumerated in City Planning
Section 101.1.

(f) Approval of Development Agreement.

If the Board of Supervisors approves the devel-
opment agreement, it shall do so by the adoption
of an ordinance. The Board of Supervisors may
not vote on the development agreement ordi-
nance on second reading unless the final version
of the development agreement ordinance is avail-
able for public review at least two working days
prior to the second reading. The development
agreement shall take effect upon its execution by
all parties following the effective date of the
ordinance. (Added by Ord. 372-88, App. 8/10/88;
amended by Ord. 59-91, App. 2/27/91)

SEC. 56.15. AMENDMENT AND
TERMINATION OF AN EXECUTED
DEVELOPMENT AGREEMENT BY
MUTUAL CONSENT.

(a) The development agreement may fur-
ther define the extent to which changes in the
project will require an amendment to the devel-
opment agreement.

(b) Either the applicant/developer or the
City and County may propose an amendment to,
or cancellation in whole or in part of, any devel-
opment agreement. Any amendment or cancella-
tion shall be by mutual consent of the parties,
except as otherwise provided in the development
agreement or in Section 56.16.

(c) The procedure for proposing and adopt-
ing an amendment which constitutes (1) a mate-
rial modification, (2) the termination in whole or
in part of the development agreement, or (3) a
minor modification which the Commission or
Board has requested to review pursuant to sub-
section (d) below, shall be the same as the pro-
cedure for entering into an agreement in the first
instance, including, but not limited to, the pro-
cedures described in Section 56.4, above.

(d) Any proposed amendment or modifica-
tion to the development agreement which would
constitute a minor modification shall not require
a noticed public hearing before the parties may
execute an amendment to the agreement. The
Director may commit to a minor modification on
behalf of the City if the following conditions are
satisfied:

(1) The Director has reached agreement with
the other party or parties to the development
agreement regarding the modification;

(2) The Director has: (i) notified the Com-
mission and the Board; (ii) caused notice of the
amendment to be pulDlished in the official news-
paper and included on the Commission calendar;
(iii) caused notice to be mailed to the parties to a
collateral agreement if specific terms or condi-
tions of said collateral agreement were incorpo-
rated into the development agreement and said
terms or conditions would be modified by said
minor modification; and (iv) caused notice to be
mailed to persons who request to be so notified;
and

(3) No member of either the Board or Com-
mission has requested an opportunity to review
and consider the minor modification within 14
days following receipt of the Director's notice.
Upon expiration of the 14-day period, in the
event that neither entity requests a hearing, the
decision of the Director shall be final. (Added by
Ord. 372-88, App. 8/10/88; amended by Ord.
59-91, App. 2/27/91)

SEC. 56.16. RECORDATION OF
DEVELOPMENT AGREEMENTS
AMENDMENT OR TERMINATION.

(a) Within 10 days after the execution of the
development agreement, or any amendments
thereto, the Clerk of the Board of Supervisors
shall have the agreement recorded with the
County Recorder.

(b) If the parties to the agreement or their
successors in interest amend or terminate the
agi'eement as provided herein, or if the Board of
Supervisors terminates or modifies the agree-
ment as provided herein for failure of the appli-
cant/developer to coraply in good faith with the

Sec. 56.16.

San Francisco - Administrative Code

4256

terms or conditions of the agreement, the Clerk
of the Board of Supervisors shall have notice of
such action recorded with the County Recorder.
(Added by Ord. 372-88, App. 8/10/88; amended
by Ord. 59-91, App. 2/27/91)

SEC. 56.17. PERIODIC REVIEW.

(a) Time for and Initiation of Review.

The Director shall conduct a review in order to
ascertain whether the applicant/developer has in
good faith complied with the development agree-
ment. The review process shall commence at the
beginning of the second week of January follow-
ing final adoption of a development agreement,
and at the same time each year thereafter for as
long as the agreement is in effect. The applicant/
developer shall provide the Director with such
information as is necessary for purposes of the
compliance review.

Prior to commencing review, the Director
shall provide written notification to any party to
a collateral agreement which the Director is
aware of pursuant to Sections 56.11(a) and (d),
above. Said notice shall summarize the periodic
review process, advising recipients of the oppor-
tunity to provide information regarding compli-
ance with the development agreement. Upon
request, the Director shall make reasonable at-
tempts to consult with any party to a collateral
agreement if specified terms and conditions of
said agreement have been incorporated into the
development agreement. Any report submitted
to the Director by any party to a collateral
agreement, if the terms or conditions of said
collateral agreement have been incorporated into
the development agreement, shall be transmit-
ted to the Commission and/or Board of Supervi-
sors.

(b) Finding of Compliance by Director.

If the Director finds on the basis of substantial
evidence, that the applicant/developer has com-
plied in good faith with the terms and conditions
of the agreement, the Director shall notify the
Commission and the Board of Supervisors of
such determination, and shall at the same time
cause notice of the determination to be published
in the official newspaper and included on the
Commission calendar. If no member of the Com-

mission or the Board of Supervisors requests a
public hearing to review the Director's determi-
nation within 14 days of receipt of the Director's
notice, the Director's determination shall be fi-
nal. In such event, the Director shall issue a
certificate of compliance, which shall be in re-
cordable form and may be recorded by the devel-
oper in the official records. The issuance of a
certificate of compliance by the Director shall
conclude the review for the applicable period.

(c) Public Hearing Required. If the Di-
rector determines on the basis of substantial
evidence that the applicant/developer has not
complied in good faith with the terms and con-
ditions of the development agreement, or other-
wise determines that the public interest would
be served by further review, or if a member of the
Commission or Board of Supervisors requests
further review pursuant to Subsection (b) above,
the Director shall make a report to the Commis-
sion which shall conduct a public hearing on the
matter. Any such public hearing must be held no
sooner than 30 days, and no later than 60 days,
after the Commission has received the Director's
report. The Director shall provide to the applicant/
developer (1) written notice of the public hearing
scheduled before the Commission at least 30
days prior to the date of the hearing, and (2) a
copy of the Director's report to the Commission
on the date the report is issued.

(d) Findings Upon Public Hearing. At

the public hearing, the applicant/developer must
demonstrate good faith compliance with the terms
of the development agreement. The Commission
shall determine upon the basis of substantial
evidence whether the applicant/developer has
complied in good faith with the terms of the
development agreement.

(e) Finding of Compliance by Commis-
sion. If the Commission, after a hearing, deter-
mines on the basis of substantial evidence that
the applicant/developer has complied in good
faith with the terms and conditions of the agree-
ment during the period under review, the Com-
mission shall instruct the Director to issue a
certificate of compliance, which shall be in re-
cordable form, may be recorded by the applicant/

4257

Development Agreements

Sec. 56.20.

developer in the official records, and which shall
conclude the review for that period; provided
that the certificate shall not be issued until after
the time has run for the Board to review the
determination. Such determination shall be re-
ported to the Board of Supervisors. Notice of
such determination shall be transmitted to the
Clerk of the Board of Supervisors within three
days following the determination. The Board
may adopt a motion by majority vote to review
the decision of the Planning Commission within
10 days of the date after the transmittal. A public
hearing shall be held within 30 days after the
date that the motion was adopted by the Board.
The Board shall review all evidence and testi-
mony presented to the Planning Commission, as
well as any new evidence and testimony pre-
sented at or before the public hearing. If the
Board votes to overrule the determination of the
Planning Commission, and refuses to approve
issuance of a certificate of compliance, the Board
shall adopt written findings in support of its
determination within 10 days following the date
of such determination. If the Board agrees with
the determination of the Planning Commission,
the Board shall notify the Planning Director to
issue the certificate of compliance.

(f) Finding of Failure of Compliance. If

the Commission after a public hearing deter-
mines on the basis of substantial evidence that
the applicantydeveloper has not complied in good
faith with the terms and conditions of the agree-
ment during the period under review, the Com-
mission shall either (1) extend the time for
compliance upon a showing of good cause; or (2)
shall initiate proceedings to modify or terminate
the agreement pursuant to Section 56.18. (Added
by Ord. 372-88, App. 8/10/88; amended by Ord.
59-91, App. 2/27/91; Ord. 287-96, App. 7/12/96)

SEC. 56.18. MODIFICATION OR
TERMINATION.

(a) If the Commission, upon a finding pur-
suant to Subdivision (f) of Section 56.17, deter-
mines that modification of the agreement is
appropriate or that the agreement should be
terminated, the Commission shall notify the

applicant/developer in writing 30 days prior to
anjT^ public hearing by the Board of Supervisors
on the Commission's recommendations.

(b) Modification or Termination. If the

Commission, upon a finding pursuant to Subdi-
vision (f) of Section 56.17, approves and recom-
mends a modification or termination of the agree-
ment, the Board of Supervisors shall hold a
public hearing to consider and determine whether
to adopt the Commission recommendation. The
procedures governing Board action shall be the
sarae as those applicable to the initial adoption
of ai development agreement; provided, however,
that consent of the applicant/developer is not
required for terminati(Dn under this section. (Added
by Ord. 372-88, App. 8/10/88)

SEC. 56.19. LIMITATION ON ACTIONS.

(a) Any decision of the Board pursuant to
this Chapter shall be final. Any court action or
proceeding to attack, review, set aside, void or
annul any final decision or determination by the
Board shall be commenced within 90 days after
(1) the date such decision or determination is
final, or (2) when acting by ordinance, after the
ordinance is signed by the Mayor, or is otherwise
finally approved.

(b) Any court action or proceeding to attack,
review, set aside, void or annul any final decision
or determination by (1) the Director pursuant to
Section 56.15(d)(iii), or (2) the Commission pur-
sueint to Section 56.17(e) shall be coramenced
within 90 days after said decision is final. (Added
by Ord. 372-88, App. 8/10/88)

SEC. 56.20. FEE.

In order to defray the cost to the City and
County of San Francisco of preparing, adopting,
and amending a development a^^eement, a fee
shall be charged and collected in accord with the
procedures described below:

(a) Cost Estimate and Application Re-
port. The reasonable costs to the various depart-
ments of the City and County of San Francisco
including, but not limited to, the Department of
City Planning, the Department of Public Works,
the Mayor's Office of Housing and Economic

Sec. 56.20.

San Francisco - Administrative Code

4258

Development, the Real Estate Department and
the City Attorney's Office for staff time, neces-
sary consultant services and associated costs of
materials and administration will vary accord-
ing to the size and complexity of the project.
Accordingly, upon receipt of an application for a
development agreement, the Department of City
Planning, after consultation with the applicant^
developer, any other parties identified in the
application as parties to the proposed develop-
ment agreement, and the affected City and County
departments, shall prepare an estimated budget
of the reasonable costs to be incurred by the City
and County (1) in the preparation and adoption
of the proposed development agreement, and (2)
in the preparation of related documents where
the costs incurred are not fully funded through
other City fees or funds; provided, however, that
if the projected time schedule exceeds one year,
then the estimated budget shall be prepared for
the initial 12-month period only, and the esti-
mated budgets for any subsequent 12-month
time periods shall be prepared prior to the end of
the prior 12-month period.

The Director shall also prepare a report for
the Commission and Board describing the appli-
cation, the anticipated public benefits listed in
the application pursuant to Section 56.4(b), and
the projected time schedule for development agree-
ment negotiations.

(b) Commission and Board of Supervi-
sors Consideration. The Commission shall rec-
ommend to the Board of Supervisors that a fee be
imposed of a specified amount after reviewing
the cost estimate prepared by the Director and
conducting a public hearing pursuant to Section
56.4(c). If the Board of Supervisors approves the
fee amount by resolution, the fee shall be paid
within 30 days after the effective date of the
resolution. The fee shall be paid in a single
installment or, at the discretion of the Director,
in four equal installments, payable periodically
over the estimated time frame for which the
estimated budget has been prepared, with the
first installment due within 30 days after the
effective date of the fee resolution.

(c) Deposit. The applicant/developer may
prepay up to 50 percent of the amount of the fee
(as calculated in the Director's estimated budget)
into a Development Agreement Fund established
for that purpose to enable the affected City
Departments and agencies to begin work on the
application. Such funds shall be deemed appro-
priated for the purposes identified in the cost
estimate, and shall be credited against the final
fee amount specified in the fee resolution if such
resolution is ultimately adopted by the Board of
Supervisors. If the Board fails to adopt such fee
resolution, then the Controller shall return any
prepaid funds remaining unexpended or unobli-
gated to the applicant/developer. If the Board
approves a fee amount which is less than the
amount which the applicant/developer prepaid,
then the Controller shall return that portion of
the difference between the fee amount and the
prepaid funds which remains unexpended or
unobligated to the applicantydeveloper.

(d) Development Agreement Fund. There
is hereby created a Development Agreement Fund
wherein all funds received under the provisions
of this section shall be deposited. All expendi-
tures from the Fund shall be for purposes of
reviewing the application for, or proposed mate-
rial modification to, a development agreement
and preparing the documents necessary to the
approval of the development agreement, or a
material modification thereto. Up to 50 percent
of the annual cost estimate is hereby deemed
appropriated for such purposes if the applicant^
developer chooses to prepay such amount pursu-
ant to Subsection (c) above. All other funds are
subject to the budget and fiscal powers of the
Board of Supervisors. Interest earned on such
amounts deposited in said Fund shall accrue to
the Fund for the purposes set forth herein. Upon
the execution of a development agreement, or
withdrawal by an applicant/developer of its ap-
plication, any unexpended or unobligated por-
tion of the fee paid by the applicant/developer
shall be returned to the applicant/developer.

(e) Waiver for Affordable Housing. The

Board of Supervisors may, by resolution, waive
all or a portion of the fee required pursuant to
this section for affordable housing developments.

4259 Development Agreements Sec. 56.20.

as that term is defined in Section 56.3, only if it
finds that such waiver is necessary to achieve
such affordable housing development.

(f) Other Fees. Payment of fees charged
under this section does not waive the fee require-
ments of other ordinances. The fee provisions set
forth herein are not intended to address fees or
funding for parties to collateral agreements.
(Added by Ord. 372-88, App. 8/10/88)

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CHAPTER 57: FILM COMMISSION

Sec. 57.1.
Sec. 57.2.

Sec. 57.3.
Sec. 57.4.

Sec. 57.5.

Sec. 57.6.

Sec. 57.7.
Sec. 57.8.

Definitions.

Establishment of Commission;

Appointment of Commissioners;

Qualifications; Terms of Office;

Compensation.

Powers and Duties.

Authority and Duties of

Executive Director.

Authorization to Enter Into Use

Contracts and Coordinate City

Departments Regarding Film

Companies; Consent of Relevant

Departments; Cost Recovery;

Sidewalk Closures and Postings.

Requirements for Film

Companies.

Exceptions.

Film Rebate Program.

SEC. 57.1. DEFINITIONS.

(a) "City" means the City and County of San
Francisco.

(b) "Commission" means the Film Commis-
sion of the City and County of San Francisco.

(c) "Film" means feature motion pictures,
video tapes, television programs, commercials,
still photography, documentaries, travelogues,
music videos and other visual art forms; pro-
vided however, that "film" shall not mean films
or video tapes for private-family use or films by
any news service or similar entity engaged in
on-the-spot broadcasting of news events.

(d) "Film company" means any individual,
corporation, firm, partnership, or other organi-
zation however organized engaged in film pro-
duction.

(e) "Film production" means the activity of
making a film for commercial or noncommercial
property where that activity (1) requires the use
of City employees or equipment or (2) interferes
with the ordinary use, safety and enjoyment of

public right-of-ways or other property under the
jurisdiction of the City (Added by Ord. 464-88,
App. 10/12/88; amended by Ord. 425-89, App.
11/21/89; Ord. 331-00, File No. 001967, App.
12/28/2000; Ord. 70-06, File No. 060065, App.
4/20/2006)

SEC. 57.2. ESTABLISHMENT OF
COMMISSION; APPOINTMENT OF
COMMISSIONERS; QUALIFICATIONS;
TERMS OF OFFICE; COMPENSATION.

(a) Establishment of Cominission. A Film
Commission for the City and County of San
Francisco (referred to hereafter in this Chapter
as "Commission") is hereby created consisting of
eleven (11) members.

(b) Appointment of Commissioners;
Qualifications. The members of the Commis-
sion shall be appointed by and serve at the
pleasure of the Mayor. At least six members of
the Commission shall be residents of the City
and County of San Francisco. The Commission
shall be composed of outstanding members of the
community The membership of the Commission
may include members who have experience in
areas such as: Performing and Creative Arts,
Production, Film or Sound Technology, Services
and Facilities, Education, Presentation and Pro-
ducing, Interactive Multimedia, and shall be
broadly representative of ethnic, racial, gender,
age and sexual orientation groups, and shall
otherwise reflect the diversity of the City and
County. The President of the Art Commission of
the City and County shall be invited to serve as
a nonvoting, ex-officio member of the Film Com-
mission.

(c) Term of Office. Commissioners shall be
appointed for a term of office of four years, except
that vacancies occurring during a term shall be
filled for the unexpired term.

(d) Compensation. Members of the Com-
mission shall not be compensated for their ser-
vice as members of the Commission. On a major-

4283

Supp. No. 1, September 2006

Sec. 57.2.

San Francisco - Administrative Code

4284

ity vote of the Commission, Commissioners may
be reimbursed for expenses incurred resulting
from their authorized activities on behalf of the
Commission.

(e) Selection of Chair. The Commission
shall, annually, select a Chair who shall serve for
a term of one year. The Commission may reap-
point a Chair to serve additional terms. In addi-
tion to any other authority vested in or duly
charged to him or her, the Chair of the Commis-
sion shall have the duty and authority to call
meetings of the Commission and to maintain
liaison with the Arts Commission from the per-
spective of film arts.

(f) Executive Director. The Commission
shall appoint an Executive Director of the Com-
mission who shall serve at the Commission's
pleasure. The Executive Director shall act as the
department head and appointing officer of the
Commission pursuant to Charter Section 4.126.
The Executive Director shall supervise the
Commission's staff, and shall have other duties
and responsibilities as provided in this Chapter.
(Added by Ord. 425-89, App. 11/21/89; amended
by Ord. 358-91, App. 10/2/91; Ord. 331-00, File
No. 001967, App. 12/28/2000)

SEC. 57.3. POWERS AND DUTIES.

The Commission shall develop, recognize,
and promote film activities in the City. The
members shall work together to explore and
promote long-term goals for film-making as a
major emphasis of the City's economic and cul-
tural base, and encourage the recognition of film
arts as an art form with widespread economic
components. The powers of the Commission shall
include, but not be limited to:

(a) Stimulating community awareness of the
film art forms;

(b) Promoting long-range investment in
projects originating in the San Francisco area,
such as scripts, film proposals, treatments, and
shorter works;

(d) Promoting the San Francisco Bay Area
as film destination;

(e) Accepting gifts, devises and bequests as
provided in Administrative Code Sections 10-116
through 10.116-3;

(f) Maintaining liaison with other specific
interest groups, councils, organizations, and in-
stitutions related to the film industry, and the
maintenance of liaison with the Art Commission
from the perspective of film arts;

(g) Providing perspective for both the Mayor
and the Board of Supervisors with respect to
long-range promotion, development and plan-
ning for a significant film arts base in San
Francisco;

(h) Adopting rules and regulations to imple-
ment and further the purposes of this Chapter.
(Added by Ord. 425-89, App. 11/21/89; amended
by Ord. 358-91, App. 10/2/91; Ord. 331-00, File
No. 001967, App. 12/28/2000)

SEC. 57.4. AUTHORITY AND DUTIES OF
EXECUTIVE DIRECTOR.

In addition to any other authority vested in
or duty charged to him or her, the Executive
Director shall serve as the sole liaison between
film companies and the various City depart-
ments. In performing the duties of liaison, the
Executive Director shall assist film companies in
locating suitable locations and shall coordinate
the efforts of the various City departments in
connection with film production utilizing City
property or employees. The Executive Director
shall also be responsible for coordinating any
film permits required by the City for film pro-
ductions. (Formerly Sec. 57.8; added by Ord.
464-88, App. 10/12/88; amended by Ord. 425-89,
App. 11/2^89; Ord. 358-91, App. 10/2/91; amended
and renumbered by Ord. 331-00, File No. 001967,
App. 12/28/2000; Ord. 70-06, File No. 060065,
App. 4/20/2006)
Note:

Former Sec. 57.4 was repealed by Ord. 331-00.

Supp. No. 1, September 2006

4285

Film Commission

Sec. 57.7.

SEC. 57.5. AUTHORIZATION TO ENTER
INTO USE CONTRACTS AND
COORDINATE CITY DEPARTMENTS
REGARDING FILM COMPANIES;
CONSENT OF RELEVANT
DEPARTMENTS; COST RECOVERY;
SIDEWALK CLOSURE AND POSTING.

(a) Use Contracts; Deposit of Funds. The

Executive Director may enter into use contracts
with organizations seeking to engage in film
production. The Executive Director shall be the
sole City representative authorized to negotiate
use contracts. Such contracts shall, at a mini-
mum, provide for the full recovery of costs in-
curred by the various City departments in pro-
viding the use of City employees, equipment and
rental facilities or rental properties. Funds to
reimburse City departments for costs incurred
by those departments for the deplo3niient of
personnel or equipment or use of rental facilities
or rental properties shall be paid directly to
those departments for deposit subject to the
budget and fiscal provisions of the Charter.

(b) Consent of Departments or Mayor.

Where film production is to take place on prop-
erty under the jurisdiction of City departments,
the Executive Director's permission to use such
property is subject to the consent of the depart-
ment head or his or her designee or the Mayor or
Mayor's designee.

(c) Schedule of Costs. In addition to the
reimbursement of City departments for the costs
incurred by those departments in deploying per-
sonnel or equipment, the Film Commission may,
consistent with Charter Section 2.109, charge
daily use fees to film companies seeking to en-
gage in film production. Until a new schedule of
use fees is approved by the Board of Supervisors,
the use fees in existence on the effective date of
this Section shall remain in effect. The revenue
generated by such use fees shall be deposited in
the San Francisco Film Production Fund.

(d) Sidewalk Closures and Sign-Post-
ing. The Film Commission may require that film
companies use City personnel or City-approved
vendors to post notice of the closure of City
streets and sidewalks for film production, and

may establish minimum sign-posting require-
ments. Notwithstanding anjrthing to the con-
trary in Section 724 of the Public Works Code,
the Executive Director may authorize the tem-
porary occupancy of public sidewalks for film
production, with the consent of the Department
of Public Works, subject to all requirements and
conditions of the Department of Public Works
and Department of Parking and Traffic. Street
closures for film production shall be governed by
applicable provisions of the Traffic Code. (Added
by Ord. 464-88, App. 10/12/88; amended by Ord.
425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91;
Ord. 287-96, App. 7/12/96; Ord. 331-00, File No.
001967, App. 12/28/2000)

SEC. 57.6. REQUIREMENTS FOR FILM
COMPANIES.

(a) Use Contracts. All film companies seek-
ing to engage in film productions shall enter into
use contracts with the Executive Director.

(b) Insurance and Indemnification. As a

condition of engaging in film productions, con-
currently with entering into a use contract with
the City for the utilization of City property or
employees, film companies shall file with the
Executive Director documentation of insurance
and indemnification holding the City and County
harmless from any liability. The amounts of such
insurance and indemnification, and the suitabil-
ity of the insuring entity, shall be determined by
the City's Risk Manager in coordination with the
Executive Director and other City departments.
(Added by Ord. 464-88, App. 10/12/88; amended
by Ord. 425-89, App. 11/21/89; Ord. 358-91, App.
10/2/91; Ord. 331-00, File No. 001967, App. 12/
28/2000)

SEC. 57.7. EXCEPTIONS.

Sections 57.5 and 57.6 of this Chapter shall
not apply to film production occurring in the
buildings or on the grounds of the San Francisco
War Memorial Performing Arts Center, the Fine
Arts Museums, the Asian Art Museum, the San
Francisco Convention Facilities, the San Fran-
cisco Port Commission, the San Francisco Recre-
ation and Parks Commission, or where inconsis-

Supp. No. 1, September 2006

Sec. 57.7.

San Francisco - Administrative Code

4286

tent with State law, the Charter or contractual
agreements. (Formerly Sec. 57.11; added by Ord.
464-88, App. 10/12/88; amended by Ord. 425-89,
App. 11/21/89; Ord. 358-91, App. 10/2/91; amended
and renumbered by Ord. 331-00, File No. 001967,
App. 12/28/2000; Ord. 70-06, File No. 060065,
App. 4/20/2006)
Note:

Former Sec. 57.7 was repealed by Ord. 331-00)

SEC. 57.8. FILM REBATE PROGRAM

(a) Purpose. The purpose of the Film Re-
bate Program is to increase the number of quali-
fied film productions being made in San Fran-
cisco, increase the number of City residents
employed in the filmmaking industry, and en-
courage the resulting economic benefits to in-
creased filmmaking in San Francisco.

(b) Definitions. As used in this Section,
the following terms shall have the following
meanings:

(1) "Principal photography" means the time
period and phase of film production during which
the main photography occurs.

(2) "Qualified low-budget film production"
means a feature-length film, television film, tele-
vision pilot, or each episode of a television series,
regardless of the medium used to create or
convey it, that is: (i) produced by a film company
that expends at least 55 percent of the total
principal photography days exclusively in the
City and (ii) has a total budget of no more than
$3,000,000. "Qualified low-budget film produc-
tion" shall not include: (i) a documentary film,
news or current affairs program, interview or
talk program, instructional film or program, film
or program consisting primarily of stock footage,
sporting event or sporting program, game show,
award ceremony, film or program intended pri-
marily for industrial, corporate or institutional
end-users, fundraising film or program, commer-
cials, music videos, or "reality" program; or (ii) a
production for which records are required under
Title 18 United States Code section 2257, to be
maintained with respect to any performer in
such production.

(3) "Qualified film production" means a fea-
ture-length film, television film, television pilot,
or each episode of a television series, regardless
of the medium used to create or convey it, that is
created by a film company that expends at least
65 percent of the total principal photography
days exclusively in the City. "Qualified film pro-
duction" shall not include: (i) a documentary
film, news or current affairs program, interview
or talk program, instructional film or program,
film or program consisting primarily of stock
footage, sporting event or sporting program, game
show, award ceremony, film or program intended
primarily for industrial, corporate or institu-
tional end-users, fundraising film or program,
commercials, music videos, or "reality" program;
or (ii) a production for which records are required
under Title 18 United States Code section 2257,
to be maintained with respect to any performer
in such production.

(4) "Qualified production cost," means the
following expenses of a qualified low-budget film
production or a qualified film production:

(A) Any fees or taxes paid to the City, or any
of its constituent departments, the proceeds of
which are placed in the general fund;

(B) Any moneys paid to the City, or any of
its constituent departments, for the use of City
property, equipment, or employees, including,
but not limited to additional police services as
described in Chapter lOB of this Administrative
Code; and

(C) Any daily use fees charged by the Film
Commission, pursuant to Section 57.5 of the
Administrative Code, to engage in film produc-
tion in the City.

(1) Allowance of Rebate. A qualified low-
budget film production or qualified film produc-
tion that pays qualified production costs shall be
entitled to a rebate, to be calculated as provided
herein.

(2) Amount of Rebate. The City shall pay
one dollar for each dollar the qualified low bud-
get film production or qualified film production
paid in qualified production cost not to exceed
$1.8 million dollars by June 30, 2009. The rebate

Supp. No. 1, September 2006

4287

Film Commission

Sec. 57.8.

shall be paid from the fund into which the
qualified production cost was originally depos-
ited. In no event shall the amount of the rebate
exceed the total amount of taxes that the quali-
fied film production or qualified low budget film
production paid to the City. The rebate shall not
be paid from funds dedicated under bond or
other legal financing covenants.

(3) Implementation. After holding a public
hearing, the Executive Director of the Film Com-
mission, in consultation with the Controller, shall
promulgate rules and regulations to establish
the procedures for implementation of the Film
Rebate Program. Such rules shall include provi-
sions describing the application process, the stan-
dards used to evaluate the applications, the
documentation that will be required to substan-
tiate the amount of the rebate, the appeal pro-
cess, and any such other provisions as deemed
necessary and appropriate to carry out the Film
Rebate Program.

(d) Reports. The Executive Director shall
report annually to the Board of Supervisors on
the implementation of the Film Rebate Program.
The report shall include a list of each qualified
film production, residency of employees, and the
total of qualified production costs submitted and
paid to each film production. Annually for the
first three years after enactment of this Ordi-
nance the Controller shall perform an assess-
ment and review of the eff"ect of the Film Rebate
Program. Based on such assessment and review,
the Controller shall prepare and submit an analy-
sis to the Board of Supervisors. The Analysis
shall be based on criteria deemed relevant by the
Controller, and may include but is not limited to
data contained in the annual reports to the
Board of Supervisors submitted by the Director
of the Film Commission.

(e) The Film Rebate Program shall expire
on June 30, 2009, unless extended by ordinance.
If the Film Rebate Program is not extended, the
City Attorney shall cause this Section to be
removed from future editions of the San Fran-
cisco Municipal Code without further action of
the Board. (Ord. 70-06, File No. 060065, App.
4/20/2006)

(Former Sec. 57.8 added by Ord. 464-88, App.
10/12/88; amended by Ord. 425-89, App. 11/21/
89; Ord. 358-91, App. 10/2/91; amended and
renumbered as 57.4 by Ord. 331-00, File No.
001967, App. 12/28/2000)

Sees. 57.9. and 57.10.

(Added by Ord. 464-88, App. 10/12/88; amended
by Ord. 425-89, App. 11/21/89; Ord. 358-91, App.
10/2/91; repealed by Ord. 331-00, File No. 001967,
App. 12/28/2000)

Sec. 57.11.

(Added by Ord. 464-88, App. 10/12/88; amended
by Ord. 425-89, App. 11/21/89; Ord. 358-91, App.
10/'i/91; amended and renumbered as 57.7 by
Ord. 331-00, File No. 001967, App. 12/28/2000)

Sees. 57.12 and 57.13.

(Added by Ord. 464-88, App. 10/12/88; amended
by Ord. 425-89, App. 11/21/89; Ord. 358-91, App.
10/2/91; repealed by Ord. 331-00, File No. 001967,
App. 12/28/2000)

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CHAPTER 58: [RESERVED]

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CHAPTER 59: [RESERVED]

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CHAPTER 60: ASSISTED HOUSING PRESERVATION ORDINANCE

Sec. 60.1. Title.

Sec. 60.2. Purposes.

Sec. 60.3. Findings.

Sec. 60.4. Definitions.

Sec. 60.5. Notice of Intent to Prepay

and/or Terminate.
Sec. 60.6. Public Hearing on Proposed

Prepayment and/or

Termination.
Sec. 60.7. Relocation Benefits for

Displacement Due to

Conversion.

Sec. 60.8. Right of Qualified Entities to

Receive Offer for Purchase of an
Assisted Housing Development.

Sec. 60.9. Expiration of Rent Subsidy

Contracts; Disclosure.

Sec. 60.10. Administrative Relief.

Sec. 60.11. Civil Actions.

Sec. 60.12. Civil Penalties.

Sec. 60.13. Rules and Regulations.

Sec. 60.14. Severability.

SEC. 60.1. TITLE.

This Assisted Housing Preservation Ordi-
nance is enacted as Chapter 60 of the Adminis-
trative Code of the City and County of San
Francisco. (Added by Ord. 332-90, App. 10/3/90)

SEC. 60.2. PURPOSES.

The purposes of this Chapter are to assist
public and private efforts to ensure that housing
affordable to very low, low and moderate income
households is not permanently removed from the
housing stock, to preserve and promote a supply
of housing that is affordable to very low, low and
moderate income residents in the community, to
protect the diversity of the community by pre-
venting displacement of very low, low and mod-
erate income households, and to prevent home-
lessness.

This Chapter is enacted:

(a) To assist efforts to ensure that the stock
of affordable rental units in the community is
preserved;

(b) To assist efforts to ensure that very low,
low^ and moderate income households are not
unnecessarily displaced from subsidized housing
units due to the owner's prepayment of loans or
termination of rent subsidies v/hich have the
effect of terminating restrictions on occupancy,
rent, and use of such units;

(c) To ensure that the City, concerned non-
profit organizations and affected tenant house-
holds receive adequate notice that affordability
restrictions may terminate to enable them to
respond to the potential proble^ms created by
conversions of subsidized rental units; and

(d) To ensure that the subsidized rental
unit occupants are provided with information
and assistance in the event of conversion of such
units to market-rate housing. (Added by Ord.
332-90, App. 10/3/90)

SEC. 60.3. FINDINGS.

The Board of Supervisors finds that:

(a) For more than 50 years, federal, state
and local governmental entities have initiated
and maintained various housing progi'ams de-
sigjQed to provide housing affordable to low and
moderate income households.

(b) Since the inception of these housing
programs, demand for affordable subsidized rental
units has consistently exceeded the supply of
such units.

(c) On May 12, 1989, the Mayor's Housing
Advisory Committee for the City and County of
San Francisco issued the draft Affordable Hous-
ing Action Plan For San Francisco. The report
concludes that "[t]he demand for housing, espe-
cially for housing affordable to households earn-
ing less than moderate income, greatly exceeds
the availability of such housing" and that the

4311

Sec. 60.3.

San Francisco - Administrative Code

4312

"preservation and improvement of the local ex-
isting affordable housing stock, particularly for
low and very low income households, must be
made a priority."

(d) The Federal Home Loan Bank has de-
termined in the Federal Home Loan Bank Hous-
ing Vacancy Survey conducted in September of
1988 that the vacancy rate for all multi-family
housing in San Francisco was approximately 1.6
percent.

(e) According to the Inventory of Federally-
Subsidized Low-Income Units at Risk of Conver-
sion issued on March 1, 1989 by the California
Coalition for Rural Housing and the California
Housing Partnership Corporation, approximately
83 privately owned developments assisted with
Federal funds are located in San Francisco. Some
of these assisted developments contain units
affordable to very low, low and moderate income
households which are at risk of conversion to
market-rate rental or ownership housing by the
year 2008. These developments include approxi-
mately 7,500 units carrying project-based rental
subsidies under the Section 8 program. Approxi-
mately 3,900 of these units are at risk of conver-
sion to market-rate housing due to prepajrment
of federal loans or termination of Section 8
subsidies. Approximately 4,000 additional units
already in nonprofit ownership are also at risk
due to impending expiration of Section 8 con-
tracts.

(f) The California State Legislature has de-
clared that there exists a severe shortage of
housing affordable to very low, low and moderate
income households, that such shortage is inimi-
cal to the safety, health and welfare of the
residents of the state, and that it is an economic
benefit to the state and a public purpose to
encourage the availability of adequate housing
for very low, low and moderate income house-
holds.

(g) Section 101.1(b)(3) of the San Francisco
Planning Code establishes as a Priority Policy
for the San Francisco Master Plan "[t]hat the
City's supply of affordable housing be preserved
and enhanced." The Housing Element of the San
Francisco General Plan establishes as one of its

primary goals the preservation and expansion of
the housing stock affordable to very low, low and
moderate income households within the City.
The California State Legislature has recently
enacted provisions requiring the City to include
in its Housing Element an analysis of existing
assisted housing developments for which subsi-
dies and applicable use restrictions may be ter-
minated during the next 10 years, and a program
for preserving such affordable units. The Legis-
lature has also enacted provisions which clarify
that the Low and Moderate Income Housing
Fund moneys administered pursuant to the Health
and Safety Code by redevelopment agencies may
be expended for assisted housing preservation
efforts.

(h) The City's Housing Assistance Plan, Com-
munity Development Objectives, and Compre-
hensive Homeless Assistance Plan all establish
the preservation and expansion of the supply of
affordable housing as major policy objectives of
the City

(i) Under the federal housing programs de-
signed to create and maintain privately owned,
publicly assisted housing affordable to house-
holds of very low, low and moderate income,
including but not limited to the Section 221(d)(3),
Section 236, Section 8 New Construction, Sub-
stantial Rehabilitation and Moderate Rehabili-
tation Programs, and the Section 8 Loan Man-
agement Set Aside Program, some persons owning
federally subsidized housing units may prepay
federally subsidized loans prior to the end of the
loan term, and/or are given the option upon
renewal dates of rental subsidies not to renew
such subsidies. The City recognizes the rights of
owners of such housing units contained in such
contracts with the federal government and that
the owners of such housing are entitled by law to
a fair return on their investment.

(j) The owners of such housing units have
enjoyed substantial financial benefits from par-
ticipation in such government programs, includ-
ing but not limited to:

(1) Programs such as the Builder Sponsor
Profit And Risk Allowance, which allowed origi-
nal owners to credit a noncash contribution to-
ward the 10 percent equity requirement;

4313

Assisted Housing Preservation Ordinance

Sec. 60.3.

(2) Calculation of the six percent return on
the basis of 10 percent of project value, regard-
less of the owner's actual cash investment;

(3) Operating income subsidies;

(4) Capital improvement loan subsidies;

(5) Reduction of debt service in insured
projects;

(6) Mortgage modification, forbearance and
workout policies which substantially reduced
risk of foreclosure;

(7) HUD regulatory preemption of local rent
control; and

(8) Tax benefits under the Tax Reform Act
of 1976, the Economic Recovery Tax Act of 1981
and the Deficit Reduction Act of 1984. Among the
most significant of these tax benefits was the
application of accelerated depreciation schedules
to assisted housing developments. For example,
in 1981, the United States Congress amended
the United States Revenue Code to enable the
owner of a low-income housing development to
take advantage of special accelerated deprecia-
tion rules. Under the 1981 amendments, such
developments were allowed to be depreciated for
tax purposes using the double declining balance
method over a shortened 15-year period. This
change in the Internal Revenue Code created a
powerful financial incentive to increase the de-
preciable basis of a development. Subsequent to
the effective date of this change, many former
owners of assisted housing developments partici-
pated in transfers of ownership at inflated prices
which greatly increased the depreciable basis of
the developments, and the tax benefits of own-
ership. In some cases, these tax benefits were
abused when transfers involved the use of unen-
forceable debt obligations to pay an inflated
purchase price and thus the depreciable basis. In
these transactions, loans which required no cur-
rent pajTnent of principal or interest, or which
carried no foreclosure remedy for default, were
used primarily to inflate depreciable basis above
the then-current value of the development. Such
loans have little or no economic value other than
as a device to inflate depreciable basis and
increase tax benefits. The creation of these "pa-
per" loans ceased when the Internal Revenue

Code was amended by the Tax Reform Act of
1986. The 1986 amendments removed the finan-
cial incentives to inflate depreciable basis by
instituting the passive activity and passive loss
rules, by lengthening the period of depreciation
for assisted housing developments to 27-V2 years,
and by changing the method from double declin-
ing balance to straight line. Therefore, the Board
of Supervisors finds that the principal or interest
due under loans created between the effective
dates of the 1981 and 1986 amendments to the
Internal Revenue Code, which are not required
to be paid currently from the cash flow generated
by operation of a development or which could not
be foreclosed upon for failure to make payments,
should not be included in the Fair Return Price.

(k) The prepa5m:ient of federally subsidized
loans and the failure to renew rental subsidies
under federal prograims will terminate federal
rent restrictions and will result in loss of housing
units affordable to and the displacement of very
low, low and moderate income households.

(1) In the San Francisco Bay Area, 18,820
units in 186 projects providing housing for thou-
sands of very low, low and moderate income
households may be directly and adversely af-
fected by the prepajf-ment of Section 221(d)(3),
Section 236, and Section 8 loans and the nonre-
newal of Section 8 project-based subsidies. This
regional loss of housing units affordable to very
low, low and moderate income households will
impact all communities within the Bay Area.
The California Legislature has declared that all
communities have an obligation to provide a fair
sheire of the region's housing needs for very low,
low and moderate income households.

(m) Conversion of subsidized rental units to
market-rate rental or ownership units will result
in the displacement of very low, low and moder-
ate income households residing in assisted hous-
ing developments, and will also result in a per-
manent loss from San Francisco's housing stock
of housing units affordable to very low, low and
moderate income households. The risk of such
conversions constitutes a substantial and imme-
diate threat to the welfare, health and safety of
San Francisco's residents. Displacement of very

Sec. 60.3.

San Francisco - Administrative Code

4314

low and low income households, the currently
inadequate supply of affordable housing units
and the lack of federal, state and local funds to
produce a sufficient supply of such units, com-
bine to force more people into already overbur-
dened emergency shelters, and onto the streets.

(n) The loss of affordable rental units result-
ing from conversion will have an adverse impact
on the goal of preserving and expanding the
existing stock of affordable housing, as well as an
adverse impact on the City's housing and service
programs by placing additional burdens on the
City's limited housing resources and limited re-
sources for providing emergency shelter and as-
sociated services.

(o) Conversions of subsidized rental units to
nonsubsidized rental units present special prob-
lems which would create conditions detrimental
to the health, safety and welfare of the San
Francisco community (Added by Ord. 332-90,
App. 10/3/90)

SEC. 60.4. DEFINITIONS.

(a) "Assisted housing development" or "de-
velopment" shall mean any multifamily rental
housing building, or group of buildings under
common ownership, comprised of four or more
rental units, which development has received or
receives any public subsidy, including, but not
limited to, a mortgage loan, a mortgage interest
subsidy, mortgage insurance or a rent subsidy
from a federal, state or local governmental body
or agency, whose rent levels are restricted so as
to be affordable to very low, low and moderate
income households.

(b) "CHFA" shall mean the California Hous-
ing Finance Agency and shall include any del-
egatee of CHFA when such delegatee acts to
administer a CHFA program.

(d) "Conversion" shall mean any of the fol-
lowing with regard to a unit which was (i) a
subsidized rental unit on the effective date of

this Chapter, and (ii) is located in a development
as to which prepayment, termination or repur-
chase has occurred:

(1) A rent increase, resulting in a rent ex-
ceeding the rental payment allowed under the
applicable use restrictions for a unit in the
assisted housing development;

(2) Demolition or other construction work
on the unit which renders the unit uninhabit-
able, is commenced; or

(3) A change in use of the development of
any unit within a development is commenced.

(e) "Conversion date" shall mean the date
on which conversion occurs.

(f) "Converted unit" shall mean a subsi-
dized rental unit that was subject to conversion.

(g) "Director of Housing" shall mean the
Deputy Mayor for Housing and Neighborhoods of
the City and County of San Francisco and his or
her designee, or if such position ceases to exist,
such other qualified City official as shall be
designated by the Mayor as the Mayor's agent
for the enforcement of this Chapter.

(h) "HUD" shall mean the United States
Department of Housing and Urban Develop-
ment, and shall include the Federal Housing
Administration ("FHA") and any delegatee of
HUD when such delegatee is acting to adminis-
ter a HUD program.

(i) "Low income household" shall mean any
household with an adjusted gross income which
does not exceed 80 percent of median income.

(j) "Median income" shall mean the median
gross annual income, adjusted for household
size, for households in the statistical area, as
published periodically by HUD. In the event that
such income determinations are no longer pub-
lished by HUD or are not updated for a period of
at least 18 months, "median income" shall mean
the median annual gross income, adjusted for
household size, for households in San Francisco
County, California, published periodically by the
California Department of Housing and Commu-
nity Development ("HCD"). In the event that
such income determinations are no longer pub-
lished by HCD, or are not updated for a period of
at least 18 months, the City shall determine the

4315

Assisted Housing Preservation Ordinance

Sec. 60.4.

median income using standards and methods
reasonably similar to those standards and meth-
ods used by HUD or HCD when it last published
a median income calculation.

(k) "Moderate income household" shall mean
any household with an adjusted gross income
which does not exceed 95 percent of median
income.

(1) "Notice of intent to prepay and/or termi-
nate" shall mean the notice the owner provides
to the Director of Housing and to Tenant House-
holds 18 months prior to prepayment or termi-
nation, as set forth in Section 60,5 of this Chap-
ter.

(m) "Owner" shall be defined to mean the
person, partnership, or corporation or other en-
tity that is a party to a contract with HUD or
other public body which provides a mortgage,
mortgage assistance, mortgage insurance, or rent
subsidy, or any spouse, employee, agent, partner,
master lessee, business affiliate or associate, or
successor in interest of such person, partnership
or corporation that receives or demands rent for
a subsidized rental unit.

(n) "Person" shall mean any natural person,
corporation, firm, partnership, association, joint
venture, government (domestic or foreign), gov-
ernmental or political subdivision or agency, or
other similar entity.

(0) "Prepayment" shall mean the prepay-
ment, prior to the expiration of the full, original,
stated term of the loan, of any loan secured by an
assisted housing development which loan was
insured or subsidized at its inception by a fed-
eral, state or local governmental body or agency,
including, but not limited to, loans made, in-
sured or subsidized under the authority of the
following provisions of federal and state law, if
such prepayment would have the effect of termi-
nating the use restrictions applicable to such
assisted housing development, without substitu-
tion of substantially similar use restrictions:

(1) New Construction, Substantial Rehabili-
tation, and Loan Management Set-Aside Pro-
grams under Section 8 of the United States
Housing Act of 1937, as amended, 42 U.S.C.
1437(f);

(2) Section 213 of the National Housing Act
of 1934, as amended, 12 U.S.C. 1715e;

(3) The Below-Market-Interest-Rate Pro-
gram under Section 221(d)(3) of the National
Housing Act of 1934, as amended, 12 U.S.C.
Section 1715 1(d)(3);

(4) Section 236 of the National Housing Act
of 1934, as amended, 12 U.S.C Section 1715z-l.

Prepayment shall not include the expiration
of the full original, stated term of a loan.

(p) "Prepayment date" shall mean the date
prepa3mient, termination or repurchase occurs.

(q) "Rent" shall imean the monetary consid-
eration paid by a tenamt household for the use or
occupancy of a unit,, and shall not include a
utility allowance.

(r) "Replacement unit" shall be defined to
mean a unit which satisfies the following stan-
dards:

(1) Is decent, safe, sanitary and comparable
to the converted unit, with a quality of construc-
tion conforming to current building code stan-
dards and adequate in number of rooms and
living space to accommodate the tenant house-
hold of the converted unit being replaced.

(2) Is located in the City in an area (i) not
subjected to unreasonably adverse environmen-
tal conditions from either natural or manmade
sources, (ii) not generally leas desirable than the
converted unit with respect to public utilities,
public and commercial facilities and neighbor-
hood conditions, including schools and municipal
services, and (iii) reasonably accessible to the
present or potential places of emplojmient of the
members of the tenant household of the con-
verted unit being replaced; and

(s) "Repurchase" shall mean purchase by an
owner or its related entity of a development or
any portion thereof, following foreclosure or trans-
fer by deed in lieu of foreclosure, which foreclo-
sure or transfer terminates the applicable use
restrictions, when the building included subsi-
dized rental units immediately prior to foreclo-
sure or transfer, and the building was owned by
the same owner prior to foreclosure or transfer in
lieu of foreclosure, and new, substantially simi-
lar use restrictions are not substituted for such

Sec. 60.4.

San Francisco - Administrative Code

4316

terminated use restrictions. For the purposes of
this Chapter, "related entity" means any of the
following:

(1) A spouse, parent, child, or other indi-
vidual related to the owner by a tie of blood,
marriage, adoption or operation of law;

(2) A partnership, if the owner is either a
general or a limited partner of the partnership;

(3) A corporation, if the owner serves on the
board of directors of the corporation, or if the
owner is a holder of 10 percent or more of any
class of the outstanding stock of the corporation;
or

(4) Any other business entity for which the
owner has primary or controlling authority for
management of the business.

(t) "Section 8" shall mean Section 8 of the
United States Housing Act of 1937, as amended,
42 U.S.C. Section 1437f

(u) "Statistical area" shall mean the San
Francisco-Oakland Metropolitan Area.

(v) "Subsidized rental unit" shall mean any
unit in an assisted housing development.

(w) "Tenant household" shall mean a person
or group of persons entitled by written or oral
agreement, subtenancy approved by the owner,
or sufferance, to occupy a unit to the exclusion of
others.

(x) "Tenant association" shall mean a group
of tenants who have formed a nonprofit corpora-
tion, limited equity cooperative corporation, un-
incorporated association, or other entity or orga-
nization whose primary purpose is the
preservation, for current and subsequent ten-
ants, of the affordability of the subsidized rental
units in which tenants reside.

(y) "Termination" shall mean terminating
or failing to renew a rent subsidy contract with
HUD or CHFA prior to the expiration of the full
term of such contract, which contract may be
unilaterally renewed by an owner, including, but
not limited to contracts entered into pursuant to:
(i) Section 8, which contracts are renewable by
an owner in five-year increments during the
contract term, but not including any contracts
entered into pursuant to the Section 8 Existing

Housing Program (24 C.F.R. Part 882); and (ii)
Section 101 of the Housing and Urban Develop-
ment Act of 1965, as amended. Termination shall
not include the expiration of a full original,
stated term of a rental subsidy contract, or the
termination of the contract upon default by the
owner.

(z) "Unit" shall mean a residential rental
unit, and shall include a subsidized rental unit.

(aa) "Use restriction" shall mean any fed-
eral, state or local statute, regulation, ordinance,
contract, regulatory agreement, covenant, or other
restriction which imposes a maximum limitation
on tenant household income as a condition of
eligibility for occupancy of a unit and (i) imposes
a restriction on the maximum rents that could be
charged for any of the units, or (ii) requires that
rents for any of the units within an assisted
housing development be reviewed by a govern-
mental body or agency before the rents charged
to tenant households may be increased.

(bb) "Very low income household" shall mean
any household with an adjusted gross income
which does not exceed 50 percent of the median
income. (Added by Ord. 332-90, App. 10/3/90)

SEC. 60.5. NOTICE OF INTENT TO
PREPAY AND/OR TERMINATE.

(a) At least 18 months prior to the antici-
pated date of any prepayment and/or termina-
tion, any owner of an assisted housing develop-
ment shall deliver to the Director of Housing and
to each tenant household a notice of intent to
prepay and/or terminate.

(b) The notice shall include the following
information:

(1) The name and address of each owner of
the assisted housing development. For any owner
that is a corporation, the notice shall contain the
names and addresses of the officers and directors
of the corporation and of any person directly or
indirectly holding more than 10 percent of any
class of the outstanding stock of the corporation.
For any owner that is a partnership or joint
venture, the notice shall contain the names and
addresses of the joint venturers or general and
limited partners and shall specify the names and

4317

Assisted Housing Preservation Ordinance

Sec. 60.6.

addresses of the natural persons who are the
principal or controlling persons of such entities.

(2) The development's name, federal, state,
or local program name and ID number, and
address;

(3) The date of intended prepayment and/or
termination and a brief description of the owner's
plans for the development, including any time-
tables or deadlines for actions to be taken;

(4) The number of subsidized rental units
in the development subject to prepayment and/or
termination, and the number of subsidized rental
units occupied by tenant households with per-
sons age 62 or older, with disabled persons, or
with children;

(5) The current rent schedule for the subsi-
dized rental units;

(6) A brief description of any contracts con-
cerning prepayment, termination or conversion
the owner has made with any government agency,
tenant household residing in the development, or
other interested person or entity;

(7) The anticipated rent schedule after pre-
payment an(d/or termination;

(8) A statement signed by the owner under
penalty of perjury certifying the date on which a
copy of the notice was sent to the Director of
Housing;

(9) A statement that the Planning Commis-
sion is required to hold a public hearing on the
intended prepayment and/or termination within
90 days of receipt of the notice by the Director of
Housing; and

(10) The telephone number of the Director
of Housing or the designee of the Director of
Housing to call to request additional written
information about the owner's responsibilities
and about the rights and options of tenant house-
holds.

(c) The 18-month notice period shall com-
mence on the date the notice of intent to prepay
and/or terminate has been received both by the
Director of Housing and by all affected tenant
households. The notice shall be deemed received
five days after it is given by deposit in the United
States mail, return receipt requested. No owner

shall cause, either by action or inaction, the
prepajrment and/or termination to occur prior to
the expiration of the 18-month notice period.

(d) Within 21 days after the owner gives the
notice of intent to prepay and/or terminate, the
owner shall submit to the Director of Housing a
statement certifying the following information
under penalty of perjury:

(1) The owner's actual cash investment in
the development, as defined by Section 60.8
(i)(l)(i) below, itemized by date of investment;

(2) The total amount of debt described in
Section 60.8 (i)(l)(iii) below; and

(3) The total amount of debt described in
Section 60.8 (i)(2)(iii) below.

(e) Upon 10 days' advance notice to the
owner, the Director of Housing raay require the
owner to make available for inspection and au-
diting during normal business hours all financial
books and records pertaining to the develop-
ment. The Director of Housing shall make a copy
of: (1) the notice of intent to prepay and/or
terminate and (2) the statement required by
Section 60.5(d) above, and shall make such cop-
ies, together with the results of such audit,
available to any qualified entity upon receipt of
written request by such qualified entity. (Added
by Ord. 332-90, App. 10/3/90)

SEC. 60.6. PUBLIC HEARING ON
PROPOSED PREPAYMENT AND/OR
TERMINATION.

(a) No later than 45 days after the date the
Director of Housing receives the Notice of Intent
to Prepay and/or Terminate, the Director shall
notify the secretary of the City Planning Com-
mission ("Commission") that such Notice was
received and shall foirward to the Commission a
copy of such Notice. No later than 45 days after
the secretary's receipt of notice from the Director
pursuant to the preceding sentence, the Plan-
ning Commission shall hold a public hearing on
the intended prepayment and/or termination.
The failure of the Commission to hold a timely
public meeting shall not prevent any person
from exercising any of its rights with respect to
the development.

Sec. 60.6.

San Francisco - Administrative Code

4318

(b) The Commission shall give notice of the
date and location of the public hearing as cus-
tomarily is given by the Commission for its
public meetings. The notice shall contain a sum-
mary of the owner's plan for the development
subsequent to prepayment and/or termination,
including the date of any proposed prepa3rment,
termination or conversion. The Commission shall
also mail the notice of the public hearing to any
interested person or organization that requests
in writing to be notified of any particular public
hearing on a proposed prepayment and/or termi-
nation, or of all public hearings on proposed
prepayments and/or terminations.

(c) At least 14 days prior to the public
hearing, the Director of Housing shall make
available to any interested person copies of the
notice of intent to prepay and/or terminate and
any other information, including copies of this
Chapter, that concerns the responsibilities of
owners and the rights and options of tenant
households.

(d) The Commission shall hear testimony
and receive relevant documents from interested
persons. The Commission shall consider the evi-
dence and make specific written findings as to
the following issues:

(1) The proposed date of prepa5mient, ter-
mination or conversion, if intended;

(2) The anticipated use of the assisted hous-
ing development subsequent to prepayment, ter-
mination or conversion, if intended;

(3) The anticipated numbers of units in the
development on any proposed prepajmient date
that will be occupied by very low, low and mod-
erate income households;

(4) The numbers of households in each in-
come category identified in Subparagraph (3),
above, that will contain, on the prepayment date,
one or more disabled tenants, who are children
under the age of 18 or persons over the age of 62;

(5) For each unit occupied by a very low, low
or moderate income household prior to the pre-
payment date, the rent increase anticipated upon
conversion expressed both numerically and as a
percentage of the rent charged immediately prior
to the conversion date;

(6) The numbers of tenant households, by
each category identified in Subparagraphs (3)
and (4) above, likely to be displaced by conver-
sion;

(7) The vacancy rates in the City for rental
units which are available at affordable rent to
very low, low and moderate income households;
and

(8) The likely impact of prepayment and/or
termination and subsequent conversion upon
public and private nonprofit services.

For the purpose of this Section 600.6(d):

(1) "Affordable rent" shall mean the rent
levels specified in Section 60.8(b)(2)(i) and (ii)
below; and

(2) A tenant household shall be presumed to
be likely to be displaced when the rent due
subsequent to the conversion date exceeds afford-
able rent.

(e) Within 30 days after the hearing, the
Commission shall complete and forward its find-
ings under Section 60.6(d) above to the Clerk of
the Board of Supervisors ("Board"). Subject to
the time required for adequate public notice and
preparation for review, the Board shall consider
the Commission's findings at the Board's next
regular meeting following receipt of the findings
by the Clerk of the Board, and shall, by resolu-
tion, accept the findings or remand the findings
to the Commission for revision. (Added by Ord.
332-90, App. 10/3/90)

SEC. 60.7. RELOCATION BENEFITS
FOR DISPLACEMENT DUE TO
CONVERSION.

(a) For any very low, low, or moderate in-
come household displaced by conversion, the
owner shall pay to such tenant household an
amount equal to the difference between (i) the
annual rent or cost of ownership required for
such household to lease or rent a unit for four
years, or to purchase a dwelling unit, either of
which is equivalent to a replacement unit and (ii)
30 percent of the actual gross annual income of
the tenant household on the prepajrment date;

4319

Assisted Housing Preservation Ordinance

Sec. 60.8.

provided, however, that in no event shall the
amount calculated under this Section 60.7(a)
exceed $5,250.

(b) For the purpose of this Section 60.7, a
tenant household is "displaced" by conversion
when, after the notice of intent to prepay and/or
terminate is given, the tenant household re-
ceives a notice to quit, or vacates the unit due to
inability to pay the increased rent due on the
conversion date, and the facts constituting the
grounds for eviction stated in Section 37.9(a)(2),
(3), (4), (6), or (7) of the San Francisco Adminis-
trative Code, or any other just cause cognizable
under federal or state regulation applicable to
the development prior to the prepajnnent date,
do not exist to justify eviction. A tenant house-
hold shall be presumed to be unable to pay the
rent due on the conversion date if such rent
exceeds the rent specified in Section 60.8(b)(2)(ii).
The tenant household shall not be considered to
be displaced by conversion if the tenant house-
hold is evicted for nonpajonent of the rent due
prior to the conversion date.

(c) A tenant household displaced by conver-
sion shall be entitled to receive the amount due
under Section 60.7(a) prior to but as a condition
of, vacating the unit.

(d) The requirement contained in Section
60.7(a) above shall not apply to any assisted
housing development which is sold or otherwise
transferred to a qualified entity pursuant to
Section 60.8 below, or if the owner provides to the
tenant household, prior to the conversion date, a
replacement unit which is immediately available
for occupancy (Added by Ord. 332-90, App. 10/3/
90)

SEC. 60.8. RIGHT OF QUALIFIED
ENTITIES TO RECEIVE OFFER FOR
PURCHASE OF AN ASSISTED HOUSING
DEVELOPMENT.

(a) Any owner of an assisted housing devel-
opment required by this Chapter to give notice of
intent to prepay and/or terminate, or to give the
notice of expiration required by Section 60.9,
below, shall not sell or otherwise transfer the
development, or any portion thereof, unless the

owner proposing such sale or transfer shall first
have provided qualified entities the opportunity
as described in this Section 60.8 to purchase the
development.

(b) A "qualified entity" within the meaning
of this Chapter means an entity that (x) is a
government entity; or (y) is described in Section
501(c)(3) and is exempt from taxation under
Section 501(a) of the Internal Revenue Code of
1986, and is (A) the tenant association of the
development, if any, (B) a nonprofit public ben-
efit corporation or (C) a limited partnership with
a nonprofit public benefit corporation as general
partner, and which:

(1) Has demonstrated, to the reasonable
satisfaction of the Director of Housing, the capa-
bility, either by itself or through a management
agent, to manage the development for the
development's remaining useful life;

(2) Agrees, in a written certification to the
owner and to the Director of Housing and through
the recording of the document described in Sec-
tion 60.8(n), to obligate itself and any successors
in interest to maintain the assisted housing
development, for its remaining useful life, for
occupancy either in (x) the same percentage of
very low, low and moderate income households
that occupied the units on the date the owner
gave notice of intent to prepay and/or terminate
or (y) the percentages specified in existing use
restrictions, whichever jdelds lower rents, at
monthly rents not exceeding the lower of:

(i) The rents specified in the existing use
restrictions; or

(ii) (A) The greater of V12 of ( 1) 30 percent of
40 percent of median income, or (2) 30 percent of
actual tenant household income, less a utility
allowance, for each unit occupied by a very low
income household; and (B) the greater of V12 of

(1) 30 percent of 70 percent of median income, or

(2) 30 percent of actual tenant household income,
less a utility allowance, for each unit occupied by
a low income household; and (C) the greater of
V12 of (1) 30 percent of 90 percent of median
income, or (2) 30 percent of actual tenant house-
hold income, less a utility allov/ance, for each
unit occupied by a moderate income household;

Sec. 60.8.

San Francisco - Administrative Code

4320

(3) Has demonstrated, to the reasonable
satisfaction of the Director of Housing, a commit-
ment to seek, dihgently and in good faith, any
additional subsidies that may become available
to increase the percentage of units available for
occupancy by very low income households at a
rent not exceeding the amount specified in Sec-
tion 60.8(b)(2)(ii) above;

(4) Does not have among its directors, gen-
eral partners, shareholders or other persons with
a financial interest in the entity, a majority of
persons who have converted subsidized rental
units or have given a notice of intent to prepay
and/or terminate; and

(5) Is not a related entity of the owner.

(c) Any person may petition the Director of
Housing to determine whether a person claiming
to be a qualified entity is a qualified entity. Upon
written request of the Director of Housing, any
person claiming to be a qualified entity shall
submit to the Director of Housing, within 30
days of receipt of such request, written documen-
tation supporting the conclusion that that per-
son is a qualified entity. Such documentation
shall include a statement by an authorized of-
ficer of the entity attesting under penalty of
perjury to the accuracy and completeness of the
facts stated in such documentation. Upon receipt
the Director of Housing shall make such docu-
mentation available for public inspection and
copying upon written request by any interested
person. The Director of Housing shall promptly
make a determination after receiving all rel-
evant information and shall support the deter-
mination with public written findings. The de-
termination of the Director may be appealed to
the Appeals Board.

(d) Any owner of an assisted housing devel-
opment who is required to give notice of intent to
prepay and/or terminate, or to give the notice of
expiration required by Section 60.9, shall not sell
or otherwise transfer an assisted housing devel-
opment, or any portion thereof, without giving,
at least 14 months prior to the date of such sale
or transfer, notice of intention to sell or transfer
the development or any portion thereof ("notice
of intent to sell"), to the Director of Housing and

to any Qualified Entity which requests in writ-
ing such notice from the owner. The notice of
intent to sell shall be signed by the owner under
penalty of perjury and given by deposit in the
United States Mail, first class, certified, return
receipt requested and posted in a conspicuous
place in the common area of the development.

(e) The notice of intent to sell shall contain
all of the following:

(1) The intended date of sale or transfer;

(2) The terms of assumable or seller take-
back financing, if any, including, but not limited
to, the name and address of the lender, the
principal amount of the loan, the interest rate,
repajrment provisions, the date the loan is due,
and the priority of the lien of any instrument
securing the loan; the terms of an applicable
subsidy contract, if any; and proposed improve-
ments to the property to be made by the owner in
connection with the sale or transfer, if any;

(3) A statement that the development or
portion thereof is available for purchase by or
transfer to a qualified entity;

(4) A statement that the owner will make
available to any qualified entity, within 15 days
of receiving a written request therefor, itemized
lists of monthly operating expenses, capital im-
provements as determined by the owner made
within each of the two preceding calendar years,
the amount of project reserves, and copies of the
two most recent financial and physical inspec-
tion reports on the development, if any, filed with
federal, state, or local agencies; and

(5) A copy of the notice of intent to prepay
and/or terminate and a statement, signed by the
owner under penalty of perjury, of the date the
notice of intent to prepay and/or terminate was
given.

(f) If, prior to the time by which the owner
must give the notice of intent to sell, the owner
already has received from a qualified entity an
offer to purchase, as defined in Section 60.8(g)
below, and the owner has accepted such offer, the
owner shall not be required to give the notice of
intent to sell; provided, however, that the owner
shall be required to submit to the Director of
Housing, and to post in a conspicuous place in

4321

Assisted Housing Preservation Ordinance

Sec. 60.8.

the assisted housing development, a certification
made under penalty of perjury that the owner
has received and accepted an offer to purchase
from a qualified entity. Such certification shall
contain a statement of the terms of the sale or
transfer.

(g) Any qualified entity which desires to
acquire the development shall send to the Direc-
tor of Housing and to the owner by United States
mail, first class, certified, return receipt re-
quested, an offer to purchase. To be effective for
the purpose of Section 60.8(i) below, such offer to
purchase shall be received by the owner no later
than eight months prior to the conversion date.
The offer to purchase shall contain the following
information:

(1) The name, address and form of organi-
zation of the qualified entity;

(2) The names and titles of the officers,
directors, and similar persons in control of and
principal investors in the qualified entity;

(3) A statement, signed by an authorized
officer under penalty of perjury, that the offeror
is a qualified entity within the meaning of this
Chapter; and

(4) The terms of the offer to purchase, in-
cluding the purchase price, the proposed meth-
ods and terms of financing, the proposed date for
close of escrow, and any other terms of purchase,
including the financing and mechanisms by which
the qualified entity will maintain the physical
integrity and the affordability of the develop-
ment.

(h) Any owner who is required to give notice
of intent to prepay and/or terminate, prior to the
date eight months prior to the proposed conver-
sion date, shall not sell or transfer, or enter into
an agreement to sell or transfer, an assisted
housing development or any portion thereof to
any entity other than a qualified entity. If an
owner receives an offer to purchase from a quali-
fied entity, the owner shall accept the offer if the
purchase price offered is equal to or exceeds the
fair return price defined in Section 60.8(i) below
and the remaining terms of the offer to purchase
are commercially reasonable. If more than one
qualified entity submits such an offer to pur-

chase, the owner may accept any such offer;
provided, however, that the owner shall be re-
quired to accept an offer to purchase by a local
qualified entity over a competing offer made by a
nonlocal qualified entity. For the purpose of this
Chapter, a qualified entity is "local" if it is a
tenant's association of the development or if its
principal office is located within the City and
County of San Francisco.

(i) For the purpose of this Chapter, the "fair
return price" shall be the greater of the following
two alternative formulas specified in this Section
60.8(i); provided, however, that the fair return
price shall in no event exceed the value of the
development appraised by standard appraisal
methods for the highest and best use, taking into
account applicable legal restrictions governing
the use of the development. The fair return price
shall equal the greater of (1) or (2) below:

(1) The sum of the following amounts:

(i) The owner's actual cash investment in
the development, adjusted for inflation by mul-
tiplying the historic dollar amount of the actual
cash investment by the Consumer Price Index as
published by the United States Department of
Labor for All Urban Consumers in the Statistical
Area, for each year between the date of the
investment and the date on which the offer
contained in the offer to purchase is proposed to
close ("adjusted actual cash investment"). Actual
cash investment shall equal the sum of the cash
required for closing the owner's purchase and
any cash subsequently invested by the owner in
improvements to the development. Actual cash
investment shall not include any amount ex-
pended for capital improvements if such expen-
diture was paid with funds from a contingency
reserve or sinking fund account of the develop-
ment. For the purpose of this Chcipter, a "sinking
fund" is any interest-bearing account into which
the interest earned is required to be deposited,
and from which withdrawal of funds is prohib-
ited until the fund maturity date; plus

(ii) A return on the value of the owner's
adjusted actual cash investment calculated as
follows: the sum of a 10 percent annual return on
actual total cash investment for the 20-year

Sec. 60.8.

San Francisco - Administrative Code

4322

period following the proposed prepayment date
increased each year by an annual four-percent
inflation rate, which sum shall be discounted to
present value by a discount rate of 10 percent;
plus

(iii) The total original principal amount of
debt, the proceeds of which were used to finance
the cost of constructing the development or for
subsequent improvements to the development,
and which debt is secured by the development at
the time of sale, but not including any debt
already incurred for prior purchase of existing
improvements or for prior seller take-back financ-
ing or for refinancing of existing debt; plus

(iv) The federal and state capital gains tax
liability of the owner actually paid as a result of
the sale of the development pursuant to this
Chapter, provided that the owner and the quali-
fied entity shall use good-faith efforts and coop-
erate with each other to minimize the amount of
federal and state capital gains taxes to the
extent legally permitted.

(2) The sum of the following amounts:

(i) The owner's adjusted actual cash invest-
ment in the development; plus

(ii) A return on the owner's adjusted actual
cash investment in the development calculated
as follows: an amount equal to 10 percent of
adjusted actual cash investment for each year
that the owner owned the development, reduced
by the amount of the annual dividend permitted
by any applicable regulatory agreement or other
covenant or condition of public subsidy and re-
ceived by the owner, and reduced by any loan
proceeds received subsequent to the owner's pur-
chase, which loan proceeds do not meet the
criteria set forth in Section 60.8(i)(l)(i) above.
The number calculated pursuant to this Section
60.8(i)(2)(ii) shall not be less than zero; plus

(iii) The total amount of debt secured by the
development, or which the owner is obligated to
repay from the cash flow generated from opera-
tion of the development, or which is secured
against a limited partnership interest or shares
of stock in any owner for which the development
is the sole significant asset, regardless of the use
of the proceeds of such debt; provided, however.

that such debt shall not include any debt in-
curred between the effective date of any appli-
cable amendments to the Internal Revenue Code
contained in the Economic Recovery Tax Act of
1981 (P.L. 97-34) and the effective date of any
applicable amendments to the Internal Revenue
Code contained in the Tax Reform Act of 1986
(RL. 99-514) if either the debt is not required to
be repaid directly from cash flow generated by
operation of the development, or the failure to
repay the debt will not give rise to the right to
foreclose on the real property comprising the
development; plus

(j) If the owner accepts an offer to purchase
from a qualified entity pursuant to Section 60.8(h)
above, an agreement for purchase and sale of the
development shall be negotiated in good faith
between the owner and the qualified entity, and
conditioned upon the reasonable amount of time
needed to obtain the necessary government ap-
provals and any necessary financing, and shall
include the following:

(1) An agreement by the owner to provide
the qualified entity with all existing loan docu-
ments and any other relevant documents relat-
ing to operation of the development not already
provided to the purchasing qualified entity, in-
cluding but not limited to, regulatory agree-
ments containing any use restrictions, loan agree-
ments, promissory notes, and deeds of trust,
within 15 days from the date of the signing of the
purchase agreement by all the parties;

(2) An agreement by the qualified entity to
make an earnest money deposit or deposits, in a
total amount not to exceed one percent of the
purchase price, within five days of executing the
agreement for purchase and sale, which, to-
gether with accrued interest shall be credited
against the purchase price at the close of escrow.
The deposit shall be refundable only if the quali-

4323

Assisted Housing Preservation Ordinance

Sec. 60.9.

fied entity, after a diligent, good-faith effort, fails
to remove all inspection and financing contingen-
cies within a reasonable time; and

(3) A statement that the terms and condi-
tions in the purchase agreement, including, but
not limited to, the timetables specified in this
subsection, may be extended or otherwise amended
only by the mutual consent of the owner and the
qualified entity.

(k) The owner shall no longer be subject to
the requirements of this Section 60.8 upon sub-
mission of a written certification to the Director
of Housing, signed by the owner under penalty of
perjury, that any of the following has occurred:

(1) The owner met all notice and informa-
tion requirements pursuant to this Chapter and
no offer to purchase was received from a quali-
fied entity within the applicable time period that
the owner was required by Section 60.8(h) above
to accept; or

(2) Despite good-faith negotiations between
the owner and the qualified entity, the parties
were unable to agree on the material provisions
of the purchase agreement, and no other quali-
fied entity made a timely offer to purchase that
the owner was required by this Chapter to ac-
cept; or

(3) A qualified entity that executed a pur-
chase agreement (i) terminated the agreement or
was unable to meet the terms of the agreement,
(ii) that the owner exercised due diligence in
carrying out the conditions of the purchase agree-
ment, and (iii) that no other qualified entity
made an offer to purchase that the owner was
required by this Chapter to accept.

(1) An owner, at any time prior to the con-
version date, may decide not to prepay, termi-
nate, sell or otherwise transfer the development
and may withdraw the notice of intention to sell,
subject to the terms of any accepted offer to
purchase or executed purchase and sale agree-
ment, and to the offeror's existing statutory and
common law remedies. In such event, the owner
shall give written notice of such decision by
United States Mail, first class, certified, return
receipt requested, to the Director of Housing, to
all tenant households in the assisted housing

development, and to any offeror qualified entity.
However, at any time that the owner again
decides to sell, or otherwise transfer the devel-
opment or any portion thereof, the 14-month
notice period and the other requirements of this
Section 60.8 shall apply to such sale or transfer.

(m) Prior to the close of escrow, an owner
selling or transferring a development, or any
portion thereof, to any purchaser, shall certify
under penalty of perjury that the owner has
complied with all provisions of this Chapter. A
copy of the certification shall be sent to the
Director of Housing by United States Mail, first
class, certified, return receipt requested, 10 days
prior to close of escrow. The certification shall be
recorded and shall contain a legail description of
the property on which the development is located
and, to the extent consistent with the practices of
the Office of the Recorder, shall be indexed to the
name of the owner as grantor.

(n) As a condition precedent to the acquisi-
tion of any development by a qualified entity
pursuant to this Chapter, the qualified entity
shall enter into a regulatory ai^eement, deed
restriction or similar agreement, in form and
substance satisfactory to the Director of Hous-
ing, which agreement shall be recorded in the
official records of San Francisco County to en-
sure that the covenants of the qualified entity
made to comply with this Chapter shall run with
the land and be binding on the qualified entity
and its successors and assigns. The qualified
entity shall submit to the owner and the Director
of Housing, concurrently with the delivery of an
offer to purchase under Section 60.8(g), its pro-
posed form of regulatory agreement or other
enforcement mechanism for review by the Direc-
tor of Housing. (Added by Ord. 332-90, App.
10/3/90)

SEC. 60.9. EXPIRATION OF RENT
SUBSIDY CONTRACTS; DISCLOSURE.

(a) At least 12 months prior to the expira-
tion of the full term of any rent subsidy contract
described in Section 60.4 above, the owner shall
give notice by United States Mail, first class,
certified, return receipt requested, of such im-
pending termination to the Director of Housing,

Sec. 60.9.

San Francisco - Administrative Code

4324

Director of City Planning, and to all tenant
households in the development. Such notice shall
contain the information required by Section
60.5(b)(1) and (2), and the following information:

(1) The date of expiration of any such rent
subsidy contract and a brief description of the
owner's plans for the development subsequent to
expiration;

(2) The number of subsidized rental units
in the development prior to expiration of any
such rent subsidy contract, and the number of
subsidized rental units occupied by tenant house-
holds with persons age 62 or older, with disabled
persons, and with persons under age 18;

(3) The current rent schedule for the devel-
opment;

(4) A brief description of any contracts con-
cerning expiration the owner has made with any
governmental agency, tenant household residing
in the development, or other interested person;

(5) The anticipated rent schedule after ex-
piration of such rent subsidy contract; and

(6) A statement by the owner signed under
penalty of perjury certifying the accuracy of the
notice as of the date the notice was given.

(b) No later than 90 days after the receipt of
the notice specified in Section 60.9(a) above, the
Director of Planning shall request that the Plan-
ning Commission hold a hearing on the impend-
ing expiration to determine: (i) what action the
City can take to prevent the loss of the rent
subsidy for the affected units; and (ii) whether
the owner has initiated or is likely to initiate a
diligent, good-faith effort to obtain a renewal or
extension of the expiring contract. The Director
of Planning shall give notice of such hearing to
the owner, the affected tenant households, the
San Francisco Housing Authority ("SFHA"), the
regional office of HUD, and any other person or
entity who submits a written request for such
notice to the Director of Housing or Director of
Planning.

(c) If an assisted housing development con-
tains subsidized rental units subsidized under
more than one project-based rent subsidy con-
tract, and all such rent subsidy contracts for the
assisted housing development do not expire on

the same date, as part of any offer to a tenant
household already residing in the development
to permit such tenant household to move into a
different unit in the development, the owner
shall disclose to such tenant household in writ-
ing the expiration dates for the rent subsidy
contracts applicable to both units. The owner
shall also send to the Director of Housing and to
the Executive Director of SFHA, by United States
mail, return receipt requested, a copy of such
offer and such disclosure. (Added by Ord. 332-90,
App. 10/3/90)

SEC. 60.10. ADMINISTRATIVE RELIEF.

(a) An owner or qualified entity may peti-
tion directly the Housing Preservation Appeals
Board ("Appeals Board"), in the same manner as
the procedure for appeals specified in Section
60.12(d) through (h) below, for relief from strict
compliance with the provisions of this Chapter.
Such relief shall be granted only as specified in
this Section 60.10, and only upon a finding by the
Appeals Board, after a hearing, that the owner
or qualified entity has shown by a preponder-
ance of the evidence that relief is warranted.

(b) An owner may be relieved of the obliga-
tion to comply with the 18-month notice require-
ment if imposed by Section 60.5 on the following
grounds:

(1) Due to the date this Chapter was en-
acted, compliance with an applicable provision of
federal or state law renders the owner unable to
comply both with such federal or State law, and
with the 18-month notice requirement; or

(2) Compliance with the 18-month notice
requirement would subject the owner's interest
in the development to substantial danger of
extinguishment by foreclosure or sale in lieu of
foreclosure.

Any order of relief entered pursuant to this
Section 60.10(b) shall reduce the IS-month no-
tice period only to the extent necessary to avoid
the situations described in Section 60.10(b)(1)
and (2) above.

4325

Assisted Housing Preservation Ordinance

Sec. 60.10.

(c) An owner may be relieved of the obliga-
tion to comply with the requirement to pay
relocation bcinefits, imposed by Section 60.7, on
the following grounds:

(1) Payment of the full amount of such
benefits will render the owner insolvent. For the
purpose of this Section 60.10(c), "insolvent" shall
mean that the value of the liabilities of the owner
exceeds the value of the owner's assets.

Any order of relief entered pursuant to this
Section 60.10(c) shall reduce the amount of relo-
cation benefits due only to the extent necessary
to avoid rendering the owner insolvent.

(d) An owner may petition on the Appeals
Board for an adjustment in the method of calcu-
lating the fair return price. Such relief shall be
granted only to the extent necessary to avoid a
result which is confiscatory. For the purpose of
this chapter, "confiscatory" shall mean that the
owner does not receive a fair return on actual
cash investment or adjusted actual cash invest-
ment as a result of sale to a qualified entity
pursuant to Section 60.8 above. Any order of
relief pursuant to this Section 60.10(d) shall
increase the fair return price only to the extent
necessary to avoid a confiscatory result.

(e) An owner may petition the Appeals Board
for reduction of the 14-month notice requirement
specified by Section 60.8(e). Such reduction may
be granted on the following grounds:

(1) Due to the date this Chapter was en-
acted, compliance with applicable provision of
federal or state law renders the owner unable to
comply both with such federal or state law, and
with the 14-month notice requirement; or

(2) Compliance with the 14-month notice
requirement would subject the owner's interest
in the development to substantial danger of
extinguishment by foreclosure or sale in lieu of
foreclosure.

Any order of relief pursuant to this Section
60.10(e) shall reduce the 14-month notice period
only to the extent necessary to avoid the situa-
tions described in Section 60.10(e)(1) and (2)
above.

(f) A qualified entity may petition the Ap-
peals Board for relief from the requirements of
Section 60.8(b)(2) if maintaining the rents at the
levels specified in Section 60.8(b)(2) renders an
assisted housing development not financially fea-
sible because the development's operating rev-
enue will not equal or exceed the sum of operat-
ing expenses. A qualified entity purchaser shall
be entitled to remove one or more units from the
rent and occupancy requirements as the Appeals
BoEird finds is necessary for the development to
become economically feasible; provided, how-
ever, that once the development is again economi-
cally feasible, the purchasing qualified entity
shall cause the next available units to be units
subject to the rent and occupancy requirements
until achieving the number and mix of restricted
units in the development required by Section
60.8(b)(2)

For the purpose of this Section 60.10(f), "op-
erating revenues" shall include rents, subsidy
paj'Tnents received on behalf of tenant house-
holds, interest on contingency reserve or other
reserve funds not designated to be a sinking
fund, and receipts from operation of laundry,
parking or other services. "Operating expenses"
shall include all costs and expenses related to
operation of the development, including debt
service on any loans required to be paid cur-
rently, but not including any debt incurred for
purchase of the development pursuant to this
Chapter unless the proceeds of such debt were
necessary to pay the fair return price, or were
used to pay the cost of capital improvements or
rehabilitation necessary to bring the develop-
ment into compliance with applicable building,
electrical, fire, plumbing, and similar code stan-
dards.

(g) Any owner may petition the Appeals
Board for a reduction in the 12-month notice
requirement specified by Section 60.9(a). Such
reduction shall be granted on the following
grounds:

(1) Due to the date this Chapter was en-
acted, compliance with applicable portions of
federal or state law renders the owner unable to
comply both with such federal or State law, and
with the 12-month notice requirement; or

Sec. 60.10.

San Francisco - Administrative Code

4326

(2) Compliance with the 12-month notice
requirement would subject the owner's interest
in the development to substantial danger of
extinguishment by foreclosure or sale in lieu of
foreclosure.

Any order of relief pursuant to this Section
60.10(g) shall reduce the 12-month notice period
only to the extent necessary to avoid the situa-
tions described in Section 60.10(g)(1) and (2)
above. (Added by Ord. 332-90, App. 10/3/90)

SEC. 60.11. CIVIL ACTIONS.

(a) Whenever an owner (i) fails to give the
notice of intent to prepay and/or terminate as
provided in this Chapter; (ii) fails to comply with
the provisions of this Chapter concerning pur-
chase by a qualified entity; (iii) attempts to
convert or converts subsidized rental units in
violation of this Chapter; or (iv) otherwise fails to
comply with the provisions of this Chapter, the
City, any tenant household of the affected devel-
opment, any affected qualified entity, or the
tenant association of the development may insti-
tute a civil proceeding for injunctive relief to
restrain the owner from such violation and/or
money damages, or for any other remedy avail-
able at law or in equity.

(b) Upon proof that the owner has willfully
or in bad faith violated any provision of this
Chapter, any affected tenant household shall
receive a judgment of treble the tenant household's
actual damages.

(c) In any action in which the City is a
party, which action is brought to enforce the
provisions of this chapter, upon proof that the
owner willfully or in bad faith converted a sub-
sidized rental unit, such owner shall be required
to pay to the City a sum at least equal to the cost
of constructing or acquiring a replacement unit
for each subsidized rental unit unlawfully con-
verted, including, for construction, the per-unit
cost of land acquisition. Any money received
under this Section 60.11(c) shall be used for the
development or preservation of housing units
affordable to and to be occupied by very low and
low income households.

(d) The prevailing party in any civil action
brought under this Section 60.11 shall be en-
titled to recover reasonable attorney's fees and
costs. Reasonable fees of attorneys of the City's
Office of City Attorney shall be based on the fees
regularly charged by private attorneys with an
equivalent number of years of professional expe-
rience in the subject matter areas of the law for
which the City Attorney's services were rendered
and who practice in the City in law firms with
approximately the same number of attorneys as
employed by the Office of City Attorney. (Added
by Ord. 332-90, App. 10/3/90)

SEC. 60.12. CIVIL PENALTIES.

(a) Any owner who negligently or intention-
ally violates any provision of this Chapter shall
be liable for a civil penalty not to exceed $5,000
for each separate violation. Such violations shall
include, but are not limited to, the making of a
false statement or representation in any notice
or other document required by this Chapter.

(b) Any interested person may petition the
Director of Housing to investigate an alleged
violation of this Chapter. Upon receipt of such
petition, or upon his or her own motion, the
Director of Housing shall give the owner 21 days'
written notice by United States Mail, first class,
certified, return receipt requested, of the date,
time and location of a hearing before the Director
of Housing, and the nature of the alleged viola-
tion. The Director of Housing shall hear the
evidence and shall determine whether any viola-
tion was negligent or intentional. The Director of
Housing shall issue a written decision with find-
ings in support of the decision that state the
nature of any violations and any appropriate
penalties.

(c) The owner or any other party to the
hearing may appeal the decision of the Director
of Housing to the Housing Preservation Appeals
Board ("Appeals Board") by filing with the Ap-
peals Board a written notice of appeal within 30
days of the date of the decision by the Director of
Housing. The notice of appeal shall state the
grounds for objection to the decision of the Direc-
tor of Housing.

4327 Assisted Housing Preservation Ordinance Sec. 60.14.

(d) The Appeals Board shall hold a public
hearing on the appeal within 45 days of the filing
of the notice of appeal and shall decide whether
to reverse or affirm the decision of the Director of
Housing within 15 days of the hearing. The
Appeals Board shall give the owner and any
person requesting notice at least 14 days' notice
of the date, time and location of the hearing.

(e) The Appeals Board shall adopt written
findings in support of its decision.

(f) The decision of the Appeals Board shall
be a final order reviewable by any court of
competent jurisdiction.

(g) The Appeals Board shall adopt rules
governing conduct of its hearings. Such rules
shall provide that parties shall have the right to
be present, to be represented by counsel, to
present evidence and to cross-examine wit-
nesses.

(h) The Appeals Board shall have three
members appointed by the Mayor.

(i) Any penalties collected pursuant to this
Section 60.12 shall be used as provided in Sec-
tion 60.11(c) above. (Added by Ord. 332-90, App.
10/3/90)

SEC. 60.13. RULES AND REGULATIONS.

The Mayor is authorized to promulgate any
rules or regulations necessary or appropriate to
carry out the purposes and requirements of this
ordinance. (Added by Ord. 332-90, App. 10/3/90)

SEC. 60.14. SEVERABILITY.

If any provision or clause of this Chapter, or
the application thereof to any person or circum-
stance, is held to be unconstitutional or to be
otherwise invalid by any court of competent
jurisdiction, such invalidity shall not affect other
chapter provisions. Clauses of this Chapter are
declared to be severable. (Added by Ord. 332-90,
App. 10/3/90)

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CHAPTER 61: WATERFRONT LAND USE

Sec. 61.1. Findings and Declaration of

Policy.
Sec. 61.2. Land Use Planning Process.

Sec. 61.3. Maritime Land Uses.

Sec. 61.4. Acceptable Non-Maritime Land

Uses.
Sec. 61.5. Unacceptable Non-Maritime

Land Uses.
Sec. 61.6. Definitions.

Sec. 61.7. Implementation.

Sec. 61.8. Severability.

Sec. 61.9. Amendment and Repeal.

Sec. 61.10. Chaptering of this Ordinance.

SEC. 61.1. FINDINGS AND
DECLARATION OF POLICY.

The people of the City and County of San
Francisco find and declare:

(a) Whereas, the waterfront of San Fran-
cisco is an irreplaceable public resource of the
highest value;

(b) Whereas, the most beneficial and appro-
priate use of the waterfront is for purposes
related to and dependent on their proximity to
San Francisco Bay and the Pacific Ocean, such
as maritime uses, public access to, and restora-
tion of, San Francisco Bay;

(d) Whereas, maritime uses, public access
to, and restoration of San Francisco Bay serve
San Francisco residents, and provide significant
economic, social and environmental benefits to
San Francisco and its residents, including a
diversity of employment opportunities and bet-
ter access to a healthier San Francisco Bay;

(e) Whereas, the waterfront contains struc-
tures of historical and architectural importance;

(f) Whereas, it is poor planning to approve
waterfront land uses on an ad hoc basis, rather
than as part of a comprehensive waterfront land
use plan;

(g) Whereas, it is in the interest of San
Frcincisco to develop a strong and economically
vital waterfront with adequate public access to
and restoration of San Francisco Bay; and

(h) Whereas, changing conditions in the mari-
time industry such as deeper draft vessels and
increased awareness of the negative environmen-
tal impacts of dredging and dredge-spoil dump-
ing indicate that cargo handling at the Port of
San Francisco could increase dramatically;

Therefore the people of San Francisco declare
that it is the policy of the City and County of San
Freincisco that:

(a) The waterfront be reserved for maritime
uses, public access, and projects which aid in the
preservation and restoration of the environment;

(b) Where such land uses are infeasible or
impossible, only acceptable non-maritime land
uses as set forth in this ordinance shall be
allowed;

(c) A waterfront land use plan shall be pre-
pared (as set forth in Section 61.2 of this ordi-
nance) to further define acceptable and unaccept-
able non-maritime land uses and to assign land
uses for specific waterfront parcels. (Added by
Proposition H, 11/6/90)

SEC. 61.2.
PROCESS.

LAND USE PLAlNfNING

(a) Upon adoption of this initiative, the Board
of Supervisors shall within 30 days request the
Port Commission to prepare a "Waterfront Use
Land Plan" which is consistent with the terms of
this initiative for waterfront lands as defined by
this ordinance. Should the Port Commission not
agree to this request within 30 dgiys of the Board
of Supervisors request, the Board of Supervisors
shall have 30 days to designate a different City
agency or department to prepare the "Waterfront
Land Use Plan."

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Sec. 61.2.

San Francisco - Administrative Code

4356

(b) The agency drafting the "Waterfront Land
Use Plan" shall consult the City Planning Com-
mission to ensure development of a plan consis-
tent with the City's Master Plan. The final plan
and any subsequent amendments thereto shall
be subject to a public hearing conducted by the
City Planning Commission to ensure consistency
between the plan and the City's Master Plan.

(1) Maritime land uses;

(2) Acceptable non-maritime land uses; and

(3) Unacceptable non-maritime land uses.

Land uses included in these categories which
are not part of the initial ordinance shall be
added to Sections 61.3 through 61.5 of this
ordinance as appropriate. No deletions from Sec-
tions 61.3 through 61.5 shall be allowed unless
approved by the voters of San Francisco;

(d) No City agency or officer may take, or
permit to be taken, any action to permit the new
development of any non-maritime land use (ex-
cept those land uses set forth in Section 61.4
below) on the waterfront until the "Waterfront
Land Use Plan" has been completed. Non-
maritime land uses existing, or which have all
their necessary permits, as of January 1, 1990,
shall be exempt from this limitation. Non-
maritime land uses included in the following
projects shall be exempt from this limitation
provided that the projects shall be subject to all
other applicable laws and regulations and that
hotels are not permitted:

(1) A project to restore two buildings on the
San Francisco waterfront that are listed on the
federal National Registrar of Historic Places as
of January 1, 1994, specifically the Ferry Build-
ing and the Agricultural Building, while continu-
ing the role of the Ferry Building area as a
transportation center, and to improve the adja-
cent pier areas including existing structures, up
to but not including any portion of Pier 1 on the
north and extending to include the pier area
adjoining and south of the Agricultural Building,
and

(2) A project to improve the public boat
launch and dock facility near Pier 52 if the
non-maritime land use is limited to a retail and
food service use of approximately 3,000 square
feet to serve the recreational boating and water
use community.

(3) This provision shall not be applicable to
any new development within the Northeast China
Basin Special Use District.

(4) This provision shall not be applicable to
any new development within the Candlestick
Point Special Use District.

(e) The "Waterfront Land Use Plan" shall
be reviewed by the agency which prepared it or
by such other agency designated by the Board of
Supervisors at a minimum of every five years,
with a view toward making any necessary amend-
ments consistent with this initiative.

(f) The "Waterfront Land Use Plan" shall be
prepared with the maximum feasible public in-
put. (Added by Proposition H, 11/6/90; amended
by Proposition P, 11/8/94; Proposition B, 3/26/96;
Proposition F, 6/3/97)

SEC. 61.3. MARITIME LAND USES.

Maritime land uses include but are not lim-
ited to:

(a) Maritime cargo handling and storage
facilities;

(b) Ship repair facilities;

(d) Marinas and boat launch ramps;

(e) Ferryboat terminals;

(f) Cruise ship terminals;

(g) Excursion and charter boat facilities and
terminals;

(h) Ship berthing facilities;

(i) Maritime construction and maritime sup-
ply facilities;

(j) Marine equipment and supply facilities;

(k) A list of additional maritime land uses
developed as part of the Waterfront Land Use
Planning process shall be included in the "Wa-

4357

Waterfront Land Use

Sec. 61.5.

terfront Land Use Plan" and added to this Sec-
tion. Uses added to this hst through the Water-
front Plan process include:

(1) Cargo shipping;

(2) Ship repair;

(3) Fishing industry;

(4) Recreational boating and water use;

(5) Feriy and excursion boats and water
taxis;

(6) Passenger cruise ships;

(7) Historic ships;

(8) Maritime support services;

(9) Maritime offices; and

(10) Port-priority uses. (Added by Proposi-
tion H, 11/6/90; amended by Ord. 7-98, App.
1/16/98)

SEC. 61.4. ACCEPTABLE
NON-MARITIME LAND USES.

Acceptable non-maritime land uses include
but are not limited to:

(a) Parks;

(b) Esplanades;

(d) Recreational fishing piers;

(e) Restoration of the ecology of San Fran-
cisco Bay and its shoreline;

(f) Transit and traffic facilities; and

(g) A list of additional acceptable non-
maritime land uses developed as part of the
Waterfront Land Use Planning process shall be
included in the "Waterfront Land Use Plan" and
added to this Section. Uses added to this list
through the Waterfront Plan process include:

(1) Public access;

(2) Open space;

(3) Commercial uses, i.e., artist/designer stu-
dios and galleries, assembly and entertainment
general office, museums, parking, retail, recre-
ational enterprises, visitor services, warehousing/
storage, wholesale trade/promotion;

(4) Other uses, i.e., academic institutions,
community facilities, general industry, power
plants, sports facilities, transportation services;

(5) Interim uses consistent with the provi-
sions of the Burton Act and Public Trust. (Added
by Proposition H, 1^6/90; amended by Proposi-
tion B, 3/26/96; Proposition F, 6/3/97; Ord. 7-98,
App. 1/16/98)

SEC. 61.5. UNACCEPTABLE
NON-MARITIME LAND USES.

(a) Criteria for Consideration in Deter-
mining Unacceptable Non-Maritime Land

Uses. Criteria to be considered in making find-
ings regarding the acceptability of any specific
land use on the waterfront shall include but are
not limited to:

(1) Does the land use need to be located on
the waterfront in order to serve its basic func-
tion?

(2) Is the land use compatible with existing
or planned maritime operations on surrounding
parcels if any?

(3) Does the land use provide the maximum
feasible public access?

(4) Does the land use improve the ecological
balance of San Francisco Bay?

(5) Does the land use protect the waterfront's
architectural heritage?

(6) Does the land use represent the best
interests of the people of the Citj^ and County of
San Francisco and/or the State of California?

(b) Prohibition of Unacceptable Non-
Maritime Land Uses. No City agency or officer
may take, or permit to be taken, any action to
permit the development of any unacceptable
non-maritime land use (as set forth below) on the
waterfront.

(c) Listing of Unacceptable Non-Mari-
time Land Uses. The following land uses are
found to be unacceptable non-maritime land uses:

(1) Hotels.

The City finds that hotels do not need to be
located on the waterfront, and permitting their
development on the waterfront will displace or
preclude maritime uses;

The City finds that waterfront hotels do not
provide the economic benefits provided by mari-
time employment;

Sec. 61.5.

San Francisco - Administrative Code

4358

The City finds that waterfront hotels do not
provide high quahty pubhc access to, or permit
restoration of, San Francisco Bay;

The City finds that waterfront hotels do not
serve the needs of San Francisco or its residents;

The City therefore finds that hotels are an
unacceptable non-maritime land use and shall
not be permitted on the waterfront.

(2) A list of additional unacceptable non-
maritime land uses developed as part of the
Waterfront Land Use Planning process shall be
included in the "Waterfront Land Use Plan" and
added to this Section. Uses added to this list
through the Waterfront Plan process include:

(i) Non-maritime private clubs;

(ii) Residential;

(iii) Nonaccessory parking (excludes in-
terim parking);

(iv) Adult entertainment;

(v) Non-marine animal services;

(vi) Mortuaries;

(vii) Heliports (except for landings for emer-
gency or medical services);

(viii) Oil refineries;

(ix) Mini-storage warehouses;

(x) Sports facilities with seating capacity
greater than 22,000, unless approved by the
voters of San Francisco.

(d) Grandfathering of Existing Unac-
ceptable Non-Maritime Land Uses. This ini-
tiative shall not prevent any unacceptable non-
maritime land uses existing as of January 1,
1990 from continuing in operation or expanding
on its existing site in a manner consistent with
all other applicable laws and regulations. At
such time as a new land use is proposed for the
site of a business existing as of January 1, 1990
that new land use must meet the conditions set
forth in this ordinance. (Added by Proposition H,
11/6/90; amended by Ord. 7-98, App. 1/16/98)

SEC. 61.6. DEFINITIONS.

(a) "City agency or officer" means the Board
of Supervisors, and all other city commissions,
boards, officers, employees, departments or enti-
ties whose exercise of powers can be affected by
initiative.

(b) "Action" includes, but is not limited to:

(1) Amendments to the Planning Code and
Master Plan;

(2) Issuance of permits or entitlements for
use by any City agency or officer;

(3) Approval, modification or reversal of de-
cisions or actions by subordinate City agencies or
officers;

(4) Approval of sales or leases pursuant to
Sections 7.402 and 7.402-1 of the Charter of the
City and County of San Francisco;

(5) Approval of or amendments to Redevel-
opment Plans; and

(6) Any other action, including but not lim-
ited to projects as defined in Public Resources
Code Section 21065.

(c) "Waterfront" means land transferred to
the City and County of San Francisco pursuant
to Chapter 1333 of the Statutes of 1968, as well
as any other property which is owned by or
under the control of the Port Commission of San
Francisco, and which is also in any of the follow-
ing areas:

(1) Piers;

(2) The shoreline band as defined in Gov-
ernment Code Section 66610(b), between the
Golden Gate National Recreation Area and the
intersection of The Embarcadero and Berry Street,
except for the area south of Jefferson Street
between Hyde Street and Powell Street;

(3) The shoreline band as defined in Gov-
ernment Code Section 66610(b), in the area
bounded by San Francisco Bay, Berry, Third, and
Evans Streets, Hunter's Point Boulevard, and a
straight line from the intersection of Hunter's
Point Boulevard and Innis Avenue to the inter-
section of Carroll Avenue and Fitch Street; and

(4) The area south of Pier 98 in which all
new development is subject to the Shoreline
Guidelines, as shown on Map 8 (Eastern Shore-
line Plan) of the Recreation and Open Space
Element of the San Francisco Master Plan, in
effect as of January 1, 1990.

4359

Waterfront Land Use

Sec. 61.10.

(d) "San Francisco Bay" means the area
defined in Government Code Section 66610(a)
which is the City and County of San Francisco,
except for areas west of Third Street.

(e) All references to public roads are to their
alignment as of January 1, 1990.

(f) "Hotel" means any use falling within the
definition in Section 314.1(g) of the San Fran-
cisco Planning Code in effect as of January 1,
1990; any waterside hotel having docks to accom-
modate persons traveling by boat; or any facili-
ties for providing temporary or transient occu-
pancy. This shall not include boat berths which
are provided for temporary moorage of boats.

(g) All other terms identifying maritime,
acceptable non-maritime, and unacceptable non-
maritime land uses shall be as defined in the
Waterfront Land Use Plan. (Added by Proposi-
tion H, 11/6/90; amended by Ord. 7-98, App.
1/16/98)

SEC. 61.7. IMPLEMENTATION.

Within 180 days of the effective date of this
ordinance, the City and County shall:

(a) Amend its Master Plan, Planning Code,
and other relevant plans and codes in a manner
consistent with this ordinance;

(b) Request and apply for conforming amend-
ments to all applicable state and regional plans
and regulations; and

(c) Begin preparation of the "Waterfront Land
Use Plan" required under Section 61.2 of this
ordinance. (Added by Proposition H, 11/6/90)

SEC. 61.8. SEVERABILITY.

If any portion of this ordinance, or the appli-
cation thereof, is hereafter determined to be
invalid by a court of competent jurisdiction, all
remaining portions of this ordinance, or applica-
tion thereof, shall remain in full force and effect.
Each section, subsection, sentence, phrase, part,
or portion of this ordinance would have been
adopted and passed irrespective of the fact that
any one or more sections, subsections, sentences,
phrases, parts or portions be declared invalid or
unconstitutional. (Added by Proposition H, 11/6/
90)

SEC. 61.9. AMENDMENT AND REPEAL.

No part of this ordinance or the amendments
made pursuant to Section 61.7 hereof may be
amended or repealed except by a vote of the
electors of the City and County of San Francisco,
except for those additional listings provided herein
in Sections 61.3, 61.4., and 61.5. (Added by Propo-
sition H, 11/6/90)

SEC. 61.10. CHAPTERING OF THIS
ORDINANCE.

After the adoption of this ordinance the Clerk
of the Board of Super-visors shall assign a Chap-
ter number to this ordinance and shall renumber
the sections of this ordinance in an appropriate
manner. (Added by Proposition H, 11/6/90)

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CHAPTER 62: DOMESTIC PARTNERSHIPS

Sec. 62.1. Purpose.

Sec. 62.2. Definitions.

Sec. 62.3. Establishing a Domestic

Partnership.
Sec. 62.4. Ending Domestic Partnerships.

Sec. 62.5. County Clerk's Records.

Sec. 62.6. Legal Effect of Declaration of

Domestic Partnership.
Sec. 62.7. Codification.

Sec. 62.8. Filing Fees.

Sec. 62.9. Civil Ceremony.

Sec. 62.10. Recognition of Domestic

Partnerships, Civil Unions, and

Similar Legal Relationships of

Other Jurisdictions.
Sec. 62.11. Amendment and Repeal.
Sec. 62.12. Severability.
Sec. 62.13. Domestic Partnerships Ratified

and Approved.

SEC. 62.1. PURPOSE.

The purpose of this ordinance is to create a
way to recognize intimate committed relation-
ships, including those of same-sex couples who
otherwise may be denied the right to marry
under California law, and to afford to domestic
partners, to the fullest extent legally possible,
the same rights, benefits, responsibilities, obli-
gations, and duties as spouses. All costs of reg-
istration must be covered by fees to be estab-
lished by ordinance. (Added by Proposition K,
11/6/90; amended by Ord. 78-04, File No. 040318,
App. 5/6/2004)

SEC. 62.2. DEFINITIONS.

(a) Domestic Partnership. Domestic Part-
ners are two adults who have chosen to share one
another's lives in an intimate and committed
relationship of mutual caring, who live together,
and who have agreed to be jointly responsible for
basic living expenses incurred during the Domes-

tic Partnership. They must sign a Declaration of
Domestic Partnership, and establish the partner-
ship under Section 62.3 of this chapter.

(b) "Live Together." "Live together" means
that two people share the same living quarters.
It is not necessary that the legal right to possess
the quarters be in both of their names. Two
people may live together even if one or both have
additional living quarters. Domestic Pai'tners do
not cease to live together if one leaves the shared
quarters but intends to return.

(c) "Basic Living Expenses." "Basic living
expenses" means the cost of basic food and shel-
ter. It also includes the expenses which are paid
at least in part by a program or benefit for which
the partner qualified because of the domestic
partnership. The individuals need not contribute
equally or jointly to the cost of these expenses as
long as they agree that both are responsible for
the costs.

(d) 'T)eclaration of Domcjstic Partner-
ship." A "Declaration of Domestic Partnership"
is a form provided by the County Clerk. By
signing it, two people agree to be jointl}^ respon-
sible for basic living expenses which they incur
during the domestic partnership and that this
agreement can be enforced by anyone to whom
those expenses are owed. They also state under
penalty of perjury thait they met the definition of
domestic partnership when they signed the state-
ment, that neither is married, and that they are
not related to each other in a way which would
bar marriage in California. The form will also
require each partner to provide a mailing ad-
dress. (Added by Proposition K, 11/6/90; amended
by Ord. 78-04, File No. 040318, App. 5/6/2004)

SEC. 62.3. ESTABLISHING A DOMESTIC
PARTNERSHIP.

(a) Methods. Two persons may establish a
Domestic Partnership by either:

(1) Presenting a signed Declaration of Do-
mestic Partnership to the County Clerk, who will
file it and give the partners a certificate showing
that the Declaration was filed; or

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Sec. 62.3.

San Francisco - Administrative Code

4372

(2) Having a Declaration of Domestic Part-
nership notarized and giving a copy to the person
who witnessed the signing (who may or may not
be the notary). However, a domestic partnership
formed in this manner shall not be recognized for
purposes of San Francisco Charter Sections
A8. 500-2 relating to the Retirement System,
where a registered domestic partnership or cer-
tificate of domestic partnership is required by
law, or where a spouse would be required to
present a marriage license. (Added by Proposi-
tion K, 11/6/90; amended by Ord. 78-04, File No.
040318, App. 5/6/2004)

SEC. 62.4. ENDING DOMESTIC
PARTNERSHIPS.

(a) When the Partnership Ends. A Do-
mestic Partnership ends when:

(1) One partner sends the other a written
notice that he or she has ended the partnership;
or

(2) One of the partners dies; or

(3) One of the partners marries or the part-
ners no longer live together.

(b) Notice the Partnership Has Ended.

( 1 ) To Domestic Partners. When a Domes-
tic Partnership ends, at least one of the partners
must sign a notice saying that the partnership
has ended. The notice must be dated and signed
under penalty of perjury. If the Declaration of
Domestic Partnership was filed with the County
Clerk, the notice must be filed with the clerk;
otherwise, the notice must be notarized. The
partner who signs the notice must send a copy to
the other partner.

(2) To Third Parties. When a Domestic
Partnership ends, a Domestic Partner who has
given a copy of a Declaration of Domestic Part-
nership to any third party, (or, if that partner has
died, the surviving member of the domestic part-
nership) must give that third party a notice
signed under penalty of perjury stating the part-
nership has ended. The notice must be sent
within 60 days of the end of the domestic part-
nership.

(3) Failure to Give Notice. Failure to give
either of the notices required by this subsection
will neither prevent nor delay termination of the
Domestic Partnership. Anyone who suffers any
loss as a result of failure to send either of these
notices may sue for actual losses. (Added by
Proposition K, 11/6/90)

SEC. 62.5. COUNTY CLERK'S RECORDS.

(a) Amendments to Declarations. A Part-
ner may amend a Declaration of Domestic Part-
nership filed with the County Clerk at any time
to show a change in his or her mailing address.

(b) Maintenance of County Clerk's
Records. The County Clerk will keep a record of
all Declarations of Domestic Partnership, amend-
ments to Declarations of Domestic Partnership
and all notices that a partnership has ended. The
records will be maintained so that amendments
and notices a partnership has ended are filed
with the Declaration of Domestic Partnership to
which they apply.

(c) Filing Fees. The Board of Supervisors
will set the filing fee for Declarations of Domestic
Partnership and Amendments. No fee will be
charged for notices that a partnership has ended.
The fees charged must cover the city's cost of
administering this ordinance. (Added by Propo-
sition K, 11/6/90; amended by Ord. 78-04, File
No. 040318, App. 5/6/2004)

SEC. 62.6. LEGAL EFFECT OF
DECLARATION OF DOMESTIC
PARTNERSHIP.

(a) Rights and Obligations. The rights
and obligations of domestic partners to each
other are those described by Section 62.2, Defi-
nitions or otherwise granted by San Francisco
law or policies.

(b) Duration of Rights and Duties. If a

domestic partnership ends, the partners incur no
further obligations to each other. (Added by
Proposition K, 11/6/90; amended by Ord. 78-04,
File No. 040318, App. 5/6/2004)

4373

Domestic Partnerships

Sec. 62.10.

SEC. 62.7. CODIFICATION.

Upon adoption, the Clerk of the Board shall
codify this amendment into the San Francisco
Administrative Code. (Added by Proposition K,
11/6/90)

SEC. 62.8. FILING FEES.

For each filing of a Declaration of Domestic
Partnership and each Amendment to a Declara-
tion of Domestic Partnership the County Clerk
shall charge a fee of $40. This fee may be
adjusted pursuant to Section 8.33.1(b) of this
Code to reflect changes in the relevant Con-
sumer Price Index as determined by the Control-
ler. (Added by Ord. 2-91, App. 1/14/91; amended
by Ord. 155-02, File No. 021079, App. 7/12/2002;
Ord. 83-04, File No. 040102, App. 5/20/2004)

SEC. 62.9. CIVIL CEREMONY.

(a) The County Clerk and any other person
authorized by state law to perform marriage
ceremonies are authorized to perform a civil
ceremony solemnizing the formation of a Domes-
tic Partnership established in accordance with
this Chapter. Persons who either (1) present a
signed Declaration of Domestic Partnership for
filing to the County Clerk in accordance with
Section 62.3(a)(1), or who (2) present a certificate
issued by the County Clerk in accordance with
Section 62.3(a)(1) showing that a signed Decla-
ration of Domestic Partnership for these persons
has been previously filed with the County Clerk,
may request that the County Clerk or any other
person authorized by state law to perform mar-
riage ceremonies perform a ceremony solemniz-
ing the formation of their Domestic Partnership.
Each request for a Domestic Partnership cer-
emony by the County Clerk shall be made in
writing on a form provided by the County Clerk,
and shall be accompanied by payment of a fee of
$60, for a ceremony to be performed during
regular business hours, and $100, for a ceremony
to be performed on a weekend or holiday. These
fees may be adjusted pursuant to Section 8.33.1(b)
of this Code to reflect changes in the relevant
Consumer Price Index as determined by the
Controller.

(b) Upon completion of the ceremony autho-
rized by Subsection (a), the County Clerk shall
issue a souvenir certificate memorializing the
performance of the ceremony. If the ceremony is
performed by a person other than the County
Clerk, the persons entering into Domestic Part-
nership shall obtain a Ceremony Request Form
from the County Clerk prior to the ceremony and
shall return such Ceremony Request Form to the
County Clerk within, six months following the
ceremony. The Ceremony Request Form, shall be
sigiaed by the officiant. The County Clerk shall
keep a record of all such ceremonies performed,
filed with the Declaration of Domestic Partner-
ship to which they apply. The County Clerk shall
keep a record of Domestic Partnership ceremo-
nies.

(c) The County Clerk is authorized to depu-
tize persons to solemnize Domestic Partnership
ceremonies. Any person 18 years of age or older
may apply to be deputized for this purpose.
Approval of applicants and the terms of any such
authorization shall be solely within the discre-
tion of the County Clerk. The County Clerk shall
charge a fee, as set forth in Section 8.33.1, for
issuing an authorization to perform the cer-
emony and oath.

(d) The ceremony authorized by this Sec-
tion shall have no legal effect upon the status of
a Domestic Partnership established pursuant to
this Chapter. (Added by Ord. 66-96, App. 2/9/96;
amended by Ord. 201-99, File No. 990996, App.
7/1/99; Ord. 155-02, File No. 021079, App. 7/12/
2002; Ord. 83-04, File No. 040102, App. 5/20/
2004)

SEC. 62.10. RECOGNITION OF
DOMESTIC PARTNERSHIPS, CIVIL
UNIONS, AND SIMILAR LEGAL
RELATIONSHIPS OF OTHER
JURISDICTIONS.

(a) A domestic partnership, civil union, or
similar legal relationship lawfully entered into
in another jurisdiction shall be entitled to all the
rights and benefits available to domestic part-
ners registered pursuant to this Chapter. A cer-
tificate of such domestic partnership, civil union,

Sec. 62.10.

San Francisco - Administrative Code

4374

or similar legal relationship issued by another
jurisdiction shall constitute sufficient proof of
entitlement to such rights and benefits.

(b) For purposes of this Chapter, "domestic
partnership, civil union, or similar legal relation-
ship" does not include a relationship between
parents and children, ancestors and descendants
of every degree, between brothers and sisters of
the half as well as the whole blood, or between
uncles or aunts and nieces or nephews, whether
or not such relationship is recognized as a do-
mestic partnership, civil union or similar legal
relationship in another jurisdiction. (Added by
Ord. 219-03, File No. 030483, App. 9/5/2003;
amended by Ord. 78-04, File No. 040318, App.
5/6/2004)

March 2, 2004 between otherwise qualified per-
sons, where the partners neither resided nor at
least one worked in San Francisco at the time
they established their Domestic Partnership. All
such domestic partnerships shall be deemed valid
as of the date the persons submitted a signed
Declaration of Domestic Partnership to the County
Clerk or delivered a signed, notarized copy of a
Declaration of Domestic Partnership to the per-
son who witnesses the signing, as provided in
Sections 62.3(a)(1) or (a)(2). (Added by Ord. 78-
04, File No. 040318, App. 5/6/2004)

SEC. 62.11. AMENDMENT AND REPEAL.

No part of this Chapter may be amended or
repealed except by a vote of the people of the City
and County of San Francisco, except that the
Board of Supervisors may amend or repeal this
Chapter as it deems necessary (1) to recognize
domestic partnerships formed in other jurisdic-
tions to the same extent as marriages formed in
other jurisdictions, and (2) to afford domestic
partners, to the fullest extent legally possible,
the same rights, benefits, responsibilities, obli-
gations and duties as spouses. (Added by Ord.
78-04, File No. 040318, App. 5/6/2004)

SEC. 62.12. SEVERABILITY.

In the event that a court or agency of compe-
tent jurisdiction holds that federal or state law,
rule or regulation invalidates any clause, sen-
tence, paragraph or section of this Chapter or the
application thereof to any person or circum-
stances, it is the intent of the Board of Supervi-
sors that the court or agency sever such clause,
sentence, paragraph or section so that the re-
mainder of this Chapter shall remain in effect.
(Added by Ord. 78-04, File No. 040318, App.
5/6/2004)

SEC. 62.13. DOMESTIC PARTNERSHIPS
RATIFIED AND APPROVED.

The Board of Supervisors hereby ratifies and
approves all domestic partnerships formed after

[The next page is 4387]

CHAPTER 63: LIMITATIONS ON WATER USE FOR LANDSCAPING IN NEW
DEVELOPMENTS AND LANDSCAPING RENOVATIONS

Sec. 63.1.
Sec. 63.2.
Sec. 63.3.

Sec. 63.4.

Sec. 63.5.

Sec. 63.6.

Sec. 63.7.

Sec. 63.8.

Sec. 63.9.

Sec. 63.10.

Purpose and Applicability.

Definitions.

Submission of Landscaping

Plan, Soil Analysis Report, and

Irrigation Plan.

Planting Design Restrictions.

Irrigation System Design and

Use Restrictions.

Maintenance Schedule.

Inspection.

Approval of Application for New

Water Service.

Severability.

San Francisco Water

Department Fees.

SEC. 63.1. PURPOSE AND
APPLICABILITY.

The purpose of this chapter is to promote
efficient water use in new and renovated land-
scaping by utilizing proper landscape design,
management and efficient irrigation equipment
and techniques. This ordinance also satisfies the
requirements of the Government Code concern-
ing Water Conservation. The following provi-
sions are mandatory restrictions on the use of
landscaping in new developments and landscap-
ing renovations. Landscaping which is part of a
registered historical site is exempt from the
provisions of this ordinance. (Added by Ord,
92-91, App. 3/14/91; amended by Ord. 192-00,
File No. 001012, App. 8/11/2000)

SEC. 63.2. DEFINITIONS.

Whenever used in this chapter, the following
terms shall have the meanings set forth below:

(a) The term "landscaping" means the plant-
ing area remaining after taking the total parcel
less the square footage of building pad(s), drive-
way(s), and parking areas.

(b) The term "new development" shall mean
the construction of ciny new building or struc-
ture, or the enlargement of an existing structure,
which involves the landscaping of an area larger
than 1,000 square feet; or the creation of a City
or privately owned landscaped area, park, com-
munity garden or other landscaped area larger
than 1,000 square fiset which requires a new
irrigation water service meter from the San
Frsmcisco Water Department.

(c) The term "landscaping renovation" shall
mean renovations of landscaping larger than
1,000 square feet involving the installation of a
new irrigation water meter to sejrve landscaping
that has not been served by the San Francisco
Water Department in the previous five years.
(Added by Ord. 92-91, App. 3/14/91; amended by
Ord. 192-00, File No. 001012, App. 8/11/2000)

SEC. 63.3. SUBMISSION OF
LANDSCAPING PLAN, SOIL ANALYSIS
REPORT, AND IRRIGATION PLAN.

Applicants for standard water service or an
irrigation water meter shall submit a landscap-
ing plan, soil analysis report and irrigation plan
to the San Francisco Water Department for land-
scaping that is a part of a new development or
landscaping renovation.

(a) The landscaping plan shall be drawn to
scale, shall be drawn on not less than 11-inch by
17-inch paper of substantial weight, and shall be
of sufficient clarity to indicate the location, na-
ture, plant palette, soil amendment, and extent
of the landscaping proposed, and show in detail
that the plantings will conform to the provisions
of this code and all relevant laws, ordinances,
rules and regulations.

(b) The soils report shall characterize the
condition of the soil present on site and any
imported soil used in landscaping of the site. The
soils report shall include the percentage of nitro-
gen, phosphorus and potassium available in the

4387

Sec. 63.3.

San Francisco - Administrative Code

4388

soil. The soils report shall identify any recom-
mendations to correct any soil deficiencies that
might impede the growth of the new plantings,
and shall require a minimum of three cubic
yards of organic matter per thousand square feet
of landscaping to be rototilled into all landscaped
areas. In the event that recommendations to
correct any soil deficiencies were included in the
soils report, the applicant must submit evidence
of correction of the soil deficiencies to the satis-
faction of San Francisco Water Department.

(c) The irrigation plan shall include the
location and type of each valve and the size and
location of sprinkler heads connected to each
valve. The irrigation plan shall also indicate the
location, brand and model of the irrigation con-
troller and the location of the irrigation system's
automatic wet weather shut-off. The location,
model and brand of the irrigation system's back-
flow prevention device shall also be included in
the irrigation plan. All backflow prevention de-
vices shall be installed in compliance with Ar-
ticle 12A of the San Francisco Health Code.
(Added by Ord. 92-91, App. 3/14/91; amended by
Ord. 192-00, File No. 001012, App. 8/11/2000;
Ord. 192-00, File No. 001012, App. 8/11/2000)

SEC. 63.4. PLANTING DESIGN
RESTRICTIONS.

The limitations set forth in this section shall
not apply to commercial farms, community gar-
dens on privately owned land used wholly or in
large part for raising fruit crops, vegetables,
herbs, or other edible plants for sale or personal
consumption.

(a) The total area devoted to turf grass,
decorative water use and water-intensive plant-
ings shall be limited to 15 percent of the total
parcel area. The turf grass limitation excludes
public or publicly accessible parklands or recre-
ation areas, sports fields, golf courses, cemeter-
ies, and children's play areas in private develop-
ments or public areas.

(b) Narrow strips of turf grass less than
eight feet wide are prohibited along traffic medi-
ans, between curbs and sidewalks, between liv-
ing units, and similar installations.

(c) If the planted area is located on a slope
exceeding 10 percent, and is also within five feet
of a hardscape or paved surface, a groundcover
other than turf grass shall be used.

(d) All water intensive plants shall be
grouped together and irrigated on a separate
cycle from low water use plants and turf grass.

(e) Low water use plants, warm season or
tall fescue turf grasses are encouraged under the
conditions of this ordinance to reduce the water
demand in the new landscaping.

(f) A minimum depth of two inches of mulch
shall be applied to the soil surface in non-turf
areas after planting.

(g) Information on low water use plants,
irrigation techniques and educational materials
on the efficient use of water will be provided by
the San Francisco Water Department. (Added by
Ord. 92-91, App. 3/14/91; amended by Ord. 192-
00, File No. 001012, App. 8/11/2000)

SEC. 63.5. IRRIGATION SYSTEM
DESIGN AND USE RESTRICTIONS.

(a) All landscaping in irrigated park areas,
traffic medians, public areas, multi-residential
and commercial developments, and industrial
parks shall have separately metered automatic
irrigation systems served by separate irrigation
water meters installed by the San Francisco
Water Department.

(b) Spray or sprinkler systems are prohib-
ited for irrigating trees.

(c) Valves and circuits shall be separated
based on water use requirements. Sprinkler heads
shall have matched precipitation rates within
each control valve circuit for uniform water ap-
plication.

(d) All irrigation systems shall be equipped
with a controller capable of dual or multiple
programming. Controllers shall be set to water
between 5:00 p.m. and 8:00 a.m. The controller
shall also include an automatic rain shut-off
control.

(e) Irrigation plans shall include schedules
reflecting the amount of water needed to main-
tain plant health and growth based on actual
water needs of the plant, including climatic data

4389

Limitations on Water Use for Landscaping
in New Developments and Landscaping Renovations

Sec. 63.10.

for the area. Separate schedules should be pro-
vided for (1) establishing new plant material
with an estimate of length of establishment and
(2) maintenance of plant material after estab-
lished. Schedules are to be created for each
month of the watering season and shall include
length and frequency of run times. Schedules
shall be prominently displayed in or adjacent to
the irrigation controller box.

(f) All irrigation systems shall be designed
and installed to prevent runoff and overspray
onto hard non-irrigated areas. Installation of
irrigation equipment must provide precipitation
rates designed and recognized in the irrigation
water industry to deliver high efficiency in water
application.

(g) In the event that recycled water be-
comes available for landscape irrigation in San
Francisco, said use shall be in accordance with
all relevant laws, ordinances, rules and regula-
tions. (Added by Ord. 92-91, App. 3/14/91; amended
by Ord. 192-00, File No. 001012, App. 8/11/2000)

SEC. 63.6. MAINTENANCE SCHEDULE.

At the time of initial sale or occupancy of
each unit in the new development the developer
shall provide to each owner or occupant of all
units on each parcel written instructions consis-
tent with the manufacturer's instructions for the
proper operation and ongoing maintenance of
the irrigation system and controls located on
each individual unit. In the case of a new devel-
opment with a single owner or where common
areas are maintained, written instruction shall
be provided to the single owner or the owners of
the common area. (Added by Ord. 92-91, App.
3/14/91; amended by Ord. 192-00, File No. 001012,
App. 8/11/2000)

SEC. 63.7. INSPECTION.

The San Francisco Water Department may in
its discretion inspect landscaping and irrigation
system installation at new developments or land-
scaping renovation sites. The San Francisco Wa-
ter Department shall be provided with reason-
able access to the site to conduct such inspections.
(Added by Ord. 92-91, App. 3/14/91; amended by
Ord. 192-00, File No. 001012, App. 8/11/2000)

SEC. 63.8. APPROVAL OF APPLICATION
FOR NEW WATER SERVICE.

Prior to obtaining approval for new water
service for a new dejvelopment or landscaping
renovation from the San Francisco Water Depart-
ment, the applicant must comply with the provi-
sions of this chapter.

Failure to comply with the provisions of this
chapter shall result in a denial of an application
for new permanent water service by the San
Fremcisco Water Department. (Added by Ord.
92-91, App. 3/14/91; amended by Ord. 192-00,
File No. 001012, App. 8/11/2000)

SEC. 63.9. SEVERABILITY.

If any section, paragraph, sentence, clause or
phrase of this chapter or any part thereof, is for
any reason to be held unconstitutional or invalid
or ineffective by any court of competent jurisdic-
tion, such decision shall not affect the validity or
effectiveness of the remaining portions of this
chapter, or any part thereof. The Board of Super-
visors hereby declares that it would have passed
each section, subsection, subdivision, paragraph,
sentence, clause or phrase thereof irrespective of
the fact that any one or more sections, subsec-
tions, subdivisions, paragraphs, sentences, clauses
or phrases be declared unconstitutional or in-
valid or ineffective. (Added by O'rd. 92-91, App.
3/14/91; amended by Ord. 192-00, File No. 001012,
App. 8/11/2000)

SEC. 63.10. SAN FRANCISCO WATER
DEPARTMENT FEES.

The San Francisco Water Department acting
through its Public Utilities Commission is autho-
rized to impose and collect fees in its discretion
to recover the costs of implementing this chapter,
including costs of document processing and re-
view, inspection, consultation vdth applicants
and administration of this chapter. (Added by
Ord. 92-91, App. 3/14/91; amended by Ord. 192-
00, File No. 001012, App. 8/11/2000)

[The next page is 4399]

San Francisco - Administrative Code

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CHAPTER 64: CITY EMPLOYEE AND CITY CONTRACTOR SAFETY AND HEALTH

Sec. 64.1. Masonry Dry-Cutting and

Dry-Grinding Prohibited for
City Employees and City
Contractors.

SEC. 64.1. MASONRY DRY-CUTTING
AND DRY-GRINDING PROHIBITED FOR
CITY EMPLOYEES AND CITY
CONTRACTORS.

(a) Application. In order to protect the
safety and health of City employees and City
contractors against the effects of silicosis and
other respiratory diseases, the following prac-
tices set forth in Subsection 64.1(b) shall apply
to:

(i) All City employees; and

(ii) City contractors engaged in construc-
tion projects funded by the City and conducted
pursuant to a construction contract with the City
awarded under Chapter 6 of this Code.

(b) Prohibition. The dry-cutting of ma-
sonry units by means of hand-held, gas-powered
or electrical, portable chop saws or skil saws and
the dry-grinding of masonry materials are pro-
hibited, except when it is determined that the
use of water in the cutting or grinding is not
feasible. In any instance where it is determined
pursuant to this subsection that the use of water
in the cutting or grinding is not feasible:

(i) The City or City contractor shall use
engineering and work practice controls, such as
a vacuum with a high efficiency particulate air
filter or other dust control system, to control the
dust;

(ii) Any dry cutting that occurs shall be
done in a designated area away from all other
workers, if possible; and

(iii) The City or City contractor shall pro-
vide workers with full-face respirators as part of
a complete respiratory program that also in-

cludes training, the proper selection of respira-
tory cartridges and fit testing to ensure that the
workers are able to wear the respirators.

(c) Exception. The provisions of this sec-
tion 64.1 shall not apply to emergency service
personnel responding to emergency situations.

(d) Preemption. In adopting this section
64.1, the Board of Supervisors does not intend to
regulate or affect the rights or authority of any
employer or employee, other than the City, City
employees, and City contractors, to do those
things that are required, directed, or expressly
authorized by federal or state law or administra-
tive regulation. This Section 64.1 is adopted
pursuant to Section 144(e) of the California La-
bor Code. (Ord. 131-06, File No. 060444, App.
6/22/2006)

[The next page is 4409]

4399

Supp. No. 1, September 2006

[INTENTIONALLY LEFT BLANK]

Supp. No. 1, September 2006

CHAPTER 65: RENT REDUCTION AND RELOCATION PLAN

FOR TENANTS INCONVENIENCED BY SEISMIC WORK

PERFORMED PURSUANT TO CHAPTERS 14 AND 15 OF THE

SAN FRANCISCO BUILDING CODE

Sec. 65.1. Applicability.

Sec. 65.2. Notice to Tenants.

Sec. 65.3. Rent Reductions.

Sec. 65.4. Habitable Rooms; Kitchens.

Sec. 65.5. Rent Reduction Formula.

Sec. 65.6. Relocation Requirements.

Sec. 65.7. Relocation Assistance Notice.

Sec. 65.8. Relocation Expenses.

Sec. 65.9. Maximum Relocation Costs.

Sec. 65.10. Rent Reductions or Relocation
Payments.

SEC. 65.1. APPLICABILITY.

This Chapter shall apply to all owners of
residential dwelling units in San Francisco who
perform seismic strengthening work on unrein-
forced masonry buildings pursuant to Chapters
14 and 15 of the San Francisco Building Code.
(Added by Ord. 220-92, App. 7/14/92)

SEC. 65.2. NOTICE TO TENANTS.

The owner or contractor shall post a notice on
the tenant's door no later than 24 hours prior to
beginning work in the tenant's dwelling unit.
The notice shall also be delivered by first class
mail or delivered in person or placed under the
tenant's dwelling unit door. The notice shall
state when a room or rooms are to be made
available for the contractor and shall state when
the tenant will have the room or rooms back for
his or her use, and shall include other informa-
tion as specified by the Director of the Rent
Board. (Added by Ord. 220-92, App. 7/14/92)

SEC. 65.3. RENT REDUCTIONS.

A tenant who loses the use of one or more
rooms during the course of the seismic strength-
ening program is entitled to reimbursement by
the owner for lost use. For purposes of this

chsipter, "lost use" shall be defined as any loss of
use of a room undergoing seismic work for the
period stated in the contractor's notice as pro-
vided in Section 65.2 above. The permanent loss
of one percent or less of the habitable square
footage of the entire dwelling unit shall be deemed
de minimis and therefore shall not constitute
"lost use." If the permanent loss of habitable
square footage of the entire dwelling unit ex-
ceeds one percent, then the Rent Board will
determine whether or not the loss is de minimis.
(Added by Ord. 220-92, App. 7/14/92)

SEC. 65.4. HABITABLE ROOMS;
KITCHENS.

For purposes of this Chapter, "rooms" are
those habitable rooms defined in Section 203.8 of
the San Francisco Housing Code. A legal kitchen
is a habitable room. (Added by Ord. 220-92, App.
7/14/92)

SEC. 65.5. RENT REDUCTION
FORMULA.

The following method shall be used to calcu-
late rent reductions:

(a) Total daily rent is the monthly rent
divided by 31;

(b) Value of a room per day is the total daily
rent divided by the number of rooms in the
dwelling unit;

(c) Days of lost use equals the number of
daj^s posted in the contractor's notice set forth in
Section 65.2 above or the actual number of days
that the room is unavailable for use, whichever
is greater;

(d) Value of a room per day times the num-
ber of days of lost use times the number of rooms
lost equals the rent reduction;

4409

Sec. 65.5.

San Francisco - Administrative Code

4410

(e) For purposes of Subsection (d) above, a
legal kitchen which has lost its use is counted as
two rooms. For purposes of Subsection (b) above,
a legal kitchen counts as one room;

(f) In addition to any rent reduction autho-
rized by Subsection (d) above, there shall be a
rent reduction of 100 percent of the total daily
rent after the first four hours of loss of heat,
electricity or water in one or more usable rooms.
There shall be a like reduction for every 24-hour
period, or fraction thereof, until the heat, elec-
tricity or water is restored. (Added by Ord.
220-92, App. 7/14/92)

SEC. 65.6. RELOCATION
REQUIREMENTS.

No tenant shall be required to vacate his or
her dwelling unit during the course of the seis-
mic strengthening of the building unless the
owner offers the tenant one of the following:

(a) A comparable dwelling unit in the same
building;

(b) A reasonably proximate, comparable
dwelling unit in a building licensed by the City to
provide relocation assistance and services to
temporarily displaced tenants; or

(c) Payment of $33 per tenant per day paid
in advance at one-week intervals, unless the
tenant must relocate for more than 21 days, in
which case the payment shall be paid in advance
at one-month intervals. (Added by Ord. 220-92,
App. 7/14/92)

shall offer the tenant the services of a mover or a
payment of $400 per room. (Added by Ord. 220-
92, App. 7/14/92)

SEC. 65.9. MAXIMUM RELOCATION
COSTS.

The owner's total liability for relocation costs
under Sections 65.6, 65.7 and 65.8 shall not
exceed $1,500 per dwelling unit per month. (Added
by Ord. 220-92, App. 7/14/92)

SEC. 65.10. RENT REDUCTIONS OR
RELOCATION PAYMENTS.

A tenant who receives relocation assistance
shall not receive a rent reduction for his or her
dwelling unit under Section 65.3 above. (Added
by Ord. 220-92, App. 7/14/92)

SEC. 65.7. RELOCATION ASSISTANCE
NOTICE.

The owner shall notify the tenant at least 30
days in advance which form of relocation assis-
tance will be available and, if applicable, the
estimated total cash amount. The notice shall
state the estimated length of time the tenant will
be displaced from his or her dwelling unit. (Added
by Ord. 220-92, App. 7/14/92)

SEC. 65.8. RELOCATION EXPENSES.

At least 10 days prior to the relocation date
on the notice in Section 65.7 above, the owner

[The next page is 4417]

CHAPTER 66: SEISMIC SAFETY RETROFIT PROGRAM

Sec. 66.1. Definitions.

Sec. 66.2. Program Regulations.

Sec. 66.3. Amount and Use of Program

Funds.
Sec. 66.4. Loan Period.

Sec. 66.5. Preservation of Housing.

SEC. 66.1. DEFINITIONS.

Unless otherwise indicated by the context,
the following definitions shall govern construc-
tion of terms in this Chapter:

(a) "Below Market Rate Loan" shall mean a
loan made from the proceeds of any individual
series of bonds issued under the Program which
shall bear an interest rate that 5delds a total
annual return to the City that equals Va of the
City's cost of funds for that series.

(b) "City's cost of funds" for any individual
series of bonds issued under the program shall
mean the true interest cost as set forth in the
resolution of the Board of Supervisors awarding
that series of bonds.

(c) "Deferred Extended Loan" is a Below
Market Rate Loan on which repayment of prin-
cipal and interest is deferred until the sooner to
occur of (1) 55 years after such loan is made or (2)
the borrower transfers title to the property whose
improvements were financed by the proceeds of
such loan, unless such transfer is a Permitted
Transfer. Deferred interest shall accrue and be
repaid at the time the principal amount of the
Deferred Extended Loan is due.

(d) "Deferred Standard Loan" is a Below
Market Rate Loan on which repayment of prin-
cipal and interest is deferred until the sooner to
occur of (1) 20 years after such loan is made or (2)
the borrower transfers title to the property whose
improvements were financed by the proceeds of
such loan, unless such transfer is a Permitted
Transfer. Deferred interest shall accrue and be
repaid at the time the principal amount of the
Deferred Standard Loan is due.

(e) "Fund" shall mean the Seismic Strength-
ening Loan Fund, established pursuant to Ad-
ministrative Code Section 10.117-110.

(f) "Market Rate Loan" shall mean a loan
made from the proceeds of any individual series
of bonds issued under the program which shall
bear an interest rate that, when coupled with the
annual administrative fees charged by the City,
yields a total annual return to the City that
equals the City's cost of funds for that series,
plus 100 basis points.

(g) "Median income" shall mean the median
income for San Francisco PMSA, adjusted for
household size, as published from time to time by
the United States Department of Housing and
Urban Development, or any successor to that
figure published by that department or any suc-
cessor to that department.

(h) "Permitted '^Pransfer" shall mean any
transfer of title of a property whose improve-
ments were financed by Below Market Rate
Loam proceeds (1) from the borrower to a limited
partnership or limited liability company formed
for the tax credit syndication of such property,
provided that the borrower or its affiliated non-
profit public benefit corporation is the sole gen-
eral partner or manager of such entity, or (2)
pursuant to an option agreement entered into by
the borrower and its general partner, manager,
or affiliate in connection with the tax credit
syndication of such property.

(i) "Program" shall mean the seismic safety
retrofit bond and losm program funded by the
Fund and established by this Chapter.

(]) "Seismic Strengthening" shall raean ac-
tions taken by or on behalf of the owner of a
building to comply with the requirements of
Chapters 16B and 16C of the San Francisco
Building Code, as amended from time to time.

(k) "UMB" shall mean an unreinforced ma-
sonry bearing wall building, the seismic strength-
ening of which may be financed by loan from the
fund. (Added by Ord. 1-93, App. 1/7/93; amended
by Ord. 1-01, File No. 001968, App. 1/12/2001;
Ord. 122-06, File No. 060386, App. 6/14/2006)

4417

Supp. No. 1, September 2006

Sec. 66.2.

San Francisco - Administrative Code

4418

SEC. 66.2. PROGRAM REGULATIONS.

(a) The Board of Supervisors shall adopt by
ordinance those regulations and rules for the
Program that the Board of Supervisors deter-
mines appropriate. Those regulations shall ad-
dress matters including, but not limited to, Pro-
gram and fund administration, nondiscrimination,
qualification for loans, loan documentation and
enforcement. (Added by Ord. 1-93, App. 1/7/93;
amended by Ord. 1-01, File No. 001968, App.
1/12/2001)

SEC. 66.3. AMOUNT AND USE OF
PROGRAM FUNDS.

(a) Amaximum of $350,000,000 will be raised
through the sale of general obligation bonds of
the City for deposit into the fund for use in the
Program and for payment of bond issuance costs.

(b) A maximum of $150,000,000 of the fund
shall be made available for Below Market Rate
loans under the Program for Seismic Strength-
ening of UMB's in which 50 percent or more of
the floor area is residential and at least 70
percent of the residential units are and will
continue to be affordable to and occupied by a
household whose income is at or below 60 per-
cent of median income.

(c) Of the $150,000,000 available for Below
Market Rate Loans, a maximum of $60,000,000
shall be made available for Deferred Standard
Loans or Deferred Extended Loans under the
Program for Seismic Strengthening of UMB's in
which 60 percent or more of the floor area is
residential and at least 80 percent of the resi-
dential units are and will continue to be afford-
able to and occupied by a household whose in-
come is at or below 40 percent of median income.

(d) A maximum of $200,000,000 of the fund
shall be made available for Market Rate Loans
for Seismic Strengthening of UMB's not qualify-
ing for loans under Subsections 66.3(b) or 66.3(c).

(e) To the extent legally required for comple-
tion of the Seismic Strengthening of or to permit
occupancy of a building, up to 25 percent of the
proceeds of any loan funded under the Program
may be spent on improvements to protect the life

or safety of or to provide disability access for
occupants of that building. (Added by Ord. 1-93,
App. 1/7/93; amended by Ord. 1-01, File No.
001968, App. 1/12/2001; Ord. 122-06, File No.
060386, App. 6/14/2006)

SEC. 66.4. LOAN PERIOD.

All loans made under the Program shall be
fully amortized over a period of 20 years, pro-
vided that all principal and interest payments
under a Deferred Standard Loan shall be repaid
in a single lump sum at the end of the Deferred
Standard Loan period and all principal and
interest pajmients under a Deferred Extended
Loan shall be repaid in a single lump sum at the
end of the Deferred Extended Loan period. (Added
by Ord. 1-93, App. 1/7/93; amended by Ord. 1-01,
File No. 001968, App. 1/12/2001; Ord. 122-06,
File No. 060386, App. 6/14/2006)

SEC. 66.5. PRESERVATION OF
HOUSING.

(a) Any loan, including a Market Rate Loan,
used to finance Seismic Strengthening of a resi-
dential structure containing luiits rented to house-
holds specified in Section 50079.5 of the Califor-
nia Health and Safety Code before strengthening
shall be subject to a regulatory agreement and
related documents that will ensure that the
number of those units in the structure will not be
reduced and will remain available at affordable
rents pursuant to Section 50053 of the California
Health and Safety Code (1) for as long as any
portion of the loan is unpaid, (2) in the case of
Below Market Rate Loans other than Deferred
Extended Loans, repaid in full in less than 20
years, for at least 20 years, and (3) in the case of
Deferred Extended Loans, repaid in full in less
than 55 years, for at least 55 years.

(b) In the case of Below Market Rate Loans
other than Deferred Extended Loans, the Regu-
latory Agreement and related documents will
include provisions to assure the continued afford-
ability and occupancy, for at least 20 years, by
households as described in Section 66.3, and
such other restrictions and requirements as
deemed appropriate by the Board of Supervisors
or the entity designated as administrator of the

Supp. No. 1, September 2006

4419 Seismic Safety Retrofit Program Sec. 66.5.

Program. In the case of Deferred Extended Loans,
the Regulatory Agreement and related docu-
ments will include provisions to assure contin-
ued affordability and occupancy, for at least 55
years, by households as described in Section
66.3, and such other restrictions and require-
ments as deemed appropriate by the Board of
Supervisors or the entity designated as admin-
istrator of the Program.

(c) In addition to any other restriction on
the reduction of the number of residential units
set forth in this Chapter, any loan made under
the Program that is used to finance Seismic
Strengthening shall be subject to a regulatory
agreement and related documents that will en-
sure that the number of residential units, if any,
in the structure being strengthened will not be
reduced for as long as any portion of the loan is
unpaid except if one of the following conditions is
met at the time that the loan is made: (1)
compliance with engineering requirements ne-
cessitates a reduction in the number of residen-
tial units; (2) the loss of units is required to
correct substandard housing conditions as de-
scribed in the Program regulations; or (3) the
structure is an owner-occupied mixed-use build-
ing with four or fewer residential units. (Added
by Ord. 1-93, App. 1/7/93; amended by Ord. 1-01,
File No. 001968, App. 1/12/2001; Ord. 122-06,
File No. 060386, App. 6/14/2006)

Sec. 66.6.

(Added by Ord. 1-93, App. 1/7/93; amended by
Ord. 287-96, App. 7/12/96; repealed by Ord. 1-01,
File No. 001968, App. 1/12/2001)

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Supp. No. 1, September 2006

CHAPTER 66A: SEISMIC SAFETY LOAN PROGRAM

Sec. 66A.1. Purpose.

Sec. 66A.2. Definitions.

Sec. 66A.3. Program Personnel.

Sec. 66A.4. Lending Criteria.

Sec. 66A.5. Documentation for Seismic

Safety Loans.
Sec. 66A.6. Security for Seismic Safety

Loans.
Sec. 66A.7. Subordination of Liens Securing

Seismic Safety Loans.
Sec. 66A.8. Permissible Loan Amounts.
Sec. 66A.9. Eligible Uses of Loan Proceeds.

Sec. 66A.10. Bidding Requirements;

MinorityAVomen Business

Enterprises.
Sec. 66A.11. Loan Application Process.
Sec. 66A.12, Initial Review of Loan

Applications by Financial

Consultant.
Sec. 66A.13. Unreinforced Masonry Building

Loan Committee.
Sec. 66A.14. Loan Committee Decisions.
Sec. 66A.15. Close of Seismic Safety Loan.
Sec. 66A.16. Loan Disbursements and

Monitoring Duties of Financial

Consultant.
Sec. 66A.17. Loan Servicing.
Sec. 66A.18. Base Wages.
Sec. 66A.19. Prevailing Wages.
Sec. 66A.20. Property/Liability Insurance.
Sec. 66A.21. Health Insurance.
Sec. 66A.22. Economically Disadvantaged

Hire Requirement.
Sec. 66A.23. Monitoring for Compliance with

Regulatory Agreements.
Sec. 66A.24. Program Regulations.
Sec. 66A.25. Program Management.
Sec. 66A.26. Affirmative Action.

SEC. 66A.1. PURPOSE.

The purpose of this Chapter 66A is to imple-
ment a seismic safety loan program ("Program")
by describing the conditions under which the
City and County of San Francisco ("City") may
lend taxable general obligation bond proceeds to
building owners to finance the seismic retrofit of
unreinforced masonry buildings. In addition to
the requirements of Administrative Code Chap-
ter 66 and this Chapter 66A, the Program shall
also be subject to all federal, state and local laws
applicable to the issuance of bonds related to the
Program, the making of loans, specific seismic
retrofit standards, and any other applicable mat-
ters. (Added by Ord. 100-94, App. 3/11/94)

SEC. 66A.2. DEFINITIONS.

Unless otherwise defined below, capitalized
terms used in this Chapter 66A shall have the
meanings set forth in this Chapter 66A or in
Administrative Code Chapter 66.

(1) "Annual Debt Service" means the pro-
jected annual sum of all pa3rments due on obli-
gations secured by the Property, as defined be-
low, for the 12 months following the completion
of Seismic Strengthening to be financed by a
Seismic Safety Loan, as defined below, including
any payments which will be due on the proposed
Seismic Safety Loan, but shall not include depre-
ciation of the Property.

(2) "Annual Net Operating Income" means
the annual sum of all gross incorae estimated to
be generated by the Property, as defined below,
during the 12 months following the completion of
Seismic Strengthening to be financed by a Seis-
mic Safety Loan, as defined below, less the sum
of all operating expenses for the Property during
such period.

(3) "Applicant" means an applicant for a
Seismic Safety Loan, as defined below.

4427

Supp. No. 1, September 2006

Sec. 66A.2.

San Francisco - Administrative Code

4428

(4) "Bolts Plus" means the retrofit standard
defined in San Francisco Building Code Section
1603B and permitted under San Francisco Build-
ing Code Section 1609C.2.

(5) "Bond Proceeds" means the proceeds of
taxable general obligation bonds to be issued by
the City to finance the Program, including inter-
est on such proceeds.

(6) "Borrower" means a recipient of a Seis-
mic Safety Loan, as defined below.

(7) "Building Code" means the San Fran-
cisco Building Code, as it may be amended from
time to time.

(8) "Debt Service Coverage Ratio" shall be
the ratio of Annual Net Operating Income on the
Property, as defined below, to Annual Debt Ser-
vice on the Property.

(9) "General Procedure" means the retrofit
standard defined in Building Code Section 1610C.

(10) "Loan Committee" means the Unrein-
forced Masonry Building Loan Committee, as
further defined in Section 66A.13.

(11) "Loan to Value Ratio" means the ratio
of the outstanding principal balance of all financ-
ing secured by the Property, as defined below,
including the proposed Seismic Safety Loan, as
defined below, to the Market Value of the Prop-
erty

(12) "Market Value" of the Property, as de-
fined below, means the value of the Property as
determined by an appraiser approved by the City
who possesses a State of California appraisal
license, certified general, based on both histori-
cal data and projected income and value follow-
ing completion of Seismic Strengthening, as de-
fined in Administrative Code Section 66.1(j).
Such appraisal shall be dated no earlier than 90
days prior to the date of application for a Seismic
Safety Loan, as defined below. The Applicant
shall be fully responsible for the cost of obtaining
such an appraisal. The Program Administrator,
as defined below, shall provide prospective Ap-
plicants with a list of preapproved appraisers.
The Applicant may obtain the prior written ap-
proval of the Program Administrator in the event
the Applicant wishes to utilize an appraiser
other than as specified on such list.

(13) "Program Administrator" means a rep-
resentative of the Mayor's Office of Housing, as
specified in Section 66A.25.

(14) "Program Regulations" means regula-
tions to be developed by the Program Adminis-
trator, which will address those issues specified
in this Chapter 66A, in addition to any other
matters deemed necessary by the Program Ad-
ministrator in order to implement Chapters 66
and 66A.

(15) "Property" means an unreinforced ma-
sonry bearing wall building ("UMB"), as defined
in Administrative Code Section 66. l(k), together
with the legal parcel(s) of real property on which
the UMB is located.

(16) "Regulatory Agreement" means an
agreement to be executed by the Property owner
and recorded against the Property in order to
restrict subsequent use of the Property, as fur-
ther described in Administrative Code Section
66.5 and in this Chapter 66 A.

(17) "Section 3403.6" means the retrofit stan-
dard defined in Building Code Section 3403.6.

(18) "Seismic Safety Loan" means a loan
made pursuant to Administrative Code Chapters
66 and 66A, and includes Below Market Rate
Loans, Deferred Extended Loans, Deferred Stan-
dard Loans, and Market Rate Loans, each as
defined in Administrative Code Section 66.1.

(19) "Special Procedure" means the retrofit
standard defined in Building Code Section 1611C.
(Added by Ord. 100-94, App. 3/11/94; amended by
Ord. 287-96, App. 7/12/96; Ord. 2-01, File No.
001969, App. 1/12/2001; Ord. 122-06, File No.
060386, App. 6/14/2006)

SEC. 66A.3. PROGRAM PERSONNEL.

In addition to the Program Administrator
and Loan Committee, as further described in
this Chapter 66A, the following individuals or
entities shall assist in the operation of the Pro-
gram. Each individual/entity shall be selected
through a request for proposals process to be
conducted by the UMB Program Administrator.
The City shall enter into agreements to obtain

Supp. No. 1, September 2006

4429

Seismic Safety Loan Program

Sec. 66A.4.

the services of such individuals and/or entities
according to apphcable City procedures and sub-
ject to all required City approvals.

(1) Financial Consultant. The financial
consultant ("Financial Consultant") shall per-
form the duties described in Sections 66A.12 and
66A.16, below.

(2) Loan Servicer. The Loan Servicer shall
be a private lender and/or loan servicer ("Loan
Servicer"). The duties of the Loan Servicer are
described in Section 66A.17, below. (Added by
Ord. 100-94, App. 3/11/94; amended by Ord.
237-96, App. 6/11/96; Ord. 2-01, File No. 001969,
App. 1/12/2001)

SEC. 66A.4. LENDING CRITERLV.

Applicants must satisfy the criteria de-
scribed in Section 66A.4(1), at a minimum, in
order to be eligible for consideration for receipt of
a Seismic Safety Loan. The Loan Committee
may also consider those additional factors de-
scribed in Section 66A.4(2) in determining whether
to approve ci Seismic Safety Loan. In no event
will an Applicant's satisfaction of the criteria in
this Section 66A.4 be deemed to guarantee ap-
proval of a Seismic Safety Loan for the Appli-
cant.

(1) Underwriting Criteria.

(a) Below Market Rate Loans. Each Ap-
plicant for a Below Market Rate Loan must show
that the Property to be rehabilitated satisfies
one of the following criteria:

(i) The Loan to Value Ratio of the Property
shall not exceed 95 percent, and the Property
shall have a minimum Debt Service Coverage
Ratio of l.lx; or

(ii) The Loan to Value Ratio of the Property
shall not exceed 90 percent, and the Property
shall have a minimum Debt Service Coverage
Ratio of 1.05x.

(b) Deferred Extended Loans and De-
ferred Standard Loans. Each Applicant for a
Deferred Extended Loan or a Deferred Standard
Loan must show that the Property to be rehabili-
tated satisfies the following criteria: The Loan to
Value Ratio of the Property shall not exceed 95
percent.

(c) Market Rate Loans. Each Applicant
for a Market Rate Loan must show that the
Property to be rehabilitated satisfies one of the
following criteria:

(i) The Loan to Value Ratio shall not exceed
95 percent, and the Property shall have a mini-
mum Debt Service Coverage Ratio of l.lx; or

(ii) The Loan to Value Ratio shall not ex-
ceed 90 percent, and the Property shall have a
minimum Debt Service Coverage Ratio of 1.05x.

(2) Other Lending Criteria. In addition
to the underwriting criteria specified in Section
66A.4(1), above, the Loan Committee shall evalu-
ate each of the follov/ing factors for each Appli-
cant, as these factors are more fully addressed in
the Program Regulations:

(a) Creditworthiness. The Loan Commit-
tee shall evaluate an Applicant's credit history
and likelihood of miaking timely loan repay-
ments.

(b) Net Worth. The Loan Committee shall
examine an Applicant's net worth and income.

(c) Experience.. The Loan Committee shall
determine whether an Applicant has experience
with rehabilitation projects, and whether such
experience may contribute to the likelihood of
timiely completion of the Seismic Strengthening
and repayment of the Seismic Safety Loan.

(d) Scope of Work. The Loan Committee
shall assess the degree to which the proposed
scope and timing of the Seismic Strengthening
will address the needs of the Property and the
surrounding neighborhood with regard to habit-
ability and marketability of the Property.

(e) Additional Factors. In the event a
Property does not meet the Loan to Value Ratio
and/or Debt Service Coverage Ratio Require-
ments set forth above, the Loan Committee may
consider the following factors in determining
whether to approve a Seismic Safety Loan, in the
following order of priority:

(i) The Applicant's ability and willingness
to repay the Seismic Safety Loan, including the
availability of additional real property collateral
as described in Section 66A.6(2), and the avail-
ability of personal or corporate guaranties, as
described in Section 66A.6(2);

Supp. No. 1, September 2006

Sec. 66A.4.

San Francisco - Administrative Code

4430

(ii) The extent to which proposed rehabili-
tation costs may be reduced in order to permit
the AppHcant to quahfy for a lesser Seismic
Safety Loan amount; and

(iii) The extent to which existing lenders of
financing secured by the Property have agreed to
subordinate the liens of their deeds of trust or
other encumbrances to the lien of the deed of
trust ("Deed of Trust") in favor of the City in
connection with a Seismic Safety Loan. (Added
by Ord. 100-94, App. 3/11/94; amended by Ord.
2-01, File No. 001969, App. 1/12/2001; Ord/ 122-
06, File No. 060386, App. 6/14/2006)

SEC. 66A.5. DOCUMENTATION FOR
SEISMIC SAFETY LOANS.

(1) Each Seismic Safety Loan shall be evi-
denced by a loan agreement, a promissory note, a
Deed of Trust, a Regulatory Agreement (where
applicable), escrow instructions, and any other
documents reasonably required to evidence the
Seismic Safety Loan and adequately protect the
City's interest in the Applicant's completion of
the Seismic Strengthening and repajrment of the
Seismic Safety Loan, The form and content of
such loan documents shall be reviewed and ap-
proved by the City Attorney's Office and the
Program Administrator.

(2) As a condition to the close of any Seismic
Safety Loan, the Deed of Trust and Regulatory
Agreement (where applicable) shall be recorded
as liens against the Property, subject only to
those encumbrances approved by the City. The
loan documents shall provide that a Seismic
Safety Loan shall, at the City's option, be due
and payable immediately upon the close of es-
crow of any sale or transfer of the Property. The
City may permit subsequent owners of the Prop-
erty or transferees of the Borrower to assume an
existing Seismic Safety Loan, provided that the
Property and the subsequent owners or transfer-
ees continue to meet the criteria set forth in
Section 66A.4, and that any such subsequent
owner or transferee expressly agrees in writing
to assume all of the Borrower's obligations under
the Seismic Safety Loan documents.

(3) A default under any document(s) evidenc-
ing a Seismic Safety Loan, including but not
limited to a Regulatory Agreement, shall consti-
tute a default under the loan agreement and
allow the City to pursue any remedies available
at law or in equity. (Added by Ord. 100-94, App.
3/11/94)

SEC. 66A.6. SECURITY FOR SEISMIC
SAFETY LOANS.

(1) Deed of Trust. As security for Borrower's
obligations in connection with the Seismic Safety
Loan, the Borrower shall execute and deliver a
deed of trust and assignment of rents ("Deed of
Trust") on the Property in favor of the City. As a
condition to the close of the Seismic Safety Loan,
the City shall record the Deed of Trust against
the Property, subject only to those liens and
encumbrances approved in writing by the City.

(2) Additional CollateraL In the event an
Applicant meets the other lending criteria speci-
fied in Section 66A.4(2), above, but does not meet
the Loan to Value Ratio or Debt Service Cover-
age Ratio requirements set forth in Section
66A.4(1), above, the Loan Committee may choose
to accept any of the following collateral, in addi-
tion to the Deed of Trust:

(a) Personal Guaranty. In cases where (i)
the Applicant is an organization exempt from
taxation under the Internal Revenue Code of the
United States and the Revenue and Taxation
Code of the State of California as a bona fide
fraternal, charitable, benevolent, religious or other
nonprofit organization; and (ii) the Property does
not meet the underwriting criteria set forth in
Section 66A.4(1), above, then the Loan Commit-
tee may choose to accept, in addition to the Deed
of Trust, a personal, corporate or other guaranty
issued for the benefit of the City from an indi-
vidual or entity unrelated to the Applicant ("Guar-
anty") to guaranty the Borrower's obligations in
connection with the Seismic Safety Loan. The
Guaranty shall be in form and substance satis-
factory to the Loan Committee. The Loan Com-
mittee may request any information required to
support the creditworthiness of the individual or
party proposing to issue the Guaranty.

Supp. No. 1, September 2006

4431

Seismic Safety Loan Program

Sec. 66A.9.

(b) Additional Real Property Security.

The Loan Committee may accept additional real
property security to be subject to a lien of a Deed
of Trust, Such real property must be located
within the nine-county San Francisco Bay Area.
The Loan to Value Ratio of such additional real
property shall not exceed 75 percent. (Added by
Ord. 100-94, App. 3/11/94; amended by Ord. 2-01,
File No. 001969, App. 1/12/2001)

SEC. 66A.7. SUBORDINATION OF LIENS
SECURING SEISMIC SAFETY LOANS.

(1) The City shall negotiate with other ex-
isting and proposed lien holders and other hold-
ers of obligations secured by the Property in
order to gain a superior position for the lien of
the Deed of Trust and the Regulatory Agree-
ment, if applicable.

(2) The City may, in its discretion, agree to
subordinate the lien of the Deed of Trust to
subsequent lenders providing financing for the
rehabilitation of the Property, so long as the
Property continues to meet the underwriting
criteria set forth in Section 66A.4(1), above.
(Added by Ord. 100-94, App. 3/11/94; amended by
Ord. 2-01, File No. 001969, App. 1/12/2001)

SEC. 66A.8. PERMISSIBLE LOAN
AMOUNTS.

(1) Determination. The City's Depart-
ment of Building Inspection and such other City
departments as determined by the Program Ad-
ministrator and the Loan Committee shall work
with the Program Administrator to determine
permissible cost ranges for seismic rehabilita-
tion activities and, from that information, pro-
posed maximum loan amounts for individual
Seismic Safety Loans, based on the type of build-
ing and the work necessary to complete the
Seismic Strengthening. The Program Adminis-
trator shall periodically review and, as neces-
sary, amend these amounts during the Program.

(2) Retrofit Standards Used to Deter-
mine Permissible Amounts.

(a) Seismic Safety Loans may be used to
finance the minimum level of Seismic Strength-
ening work required by Chapters 14 and 15 of
the Building Code, subject to Subsections (b) and
(c), below.

(b) In the event a Property v/ould qualify for
Bolts Plus but the Applicant elects to comply
with the Special Procedure, the amount of the
Seismic Safety Loan, shall be calculated based
upon the sum necessary to comply with the
Special Procedure.

(c) In the event a Property would qualify for
the General Procedure, and the Applicant dem-
onstrates that the cost of complying with Section
104(f) would be less than or equal to the cost of
complying with the General Procedure, the
amount of the Seismic Safety Loan shall be
calculated based upon the sum necessary to
comply with Section 104(f).

(3) Proposed Loans in Excess of Permis-
sible Amounts. The Loan Committee may, in its
discretion, approve Seismic Safety Loans in ex-
cess of the amounts determined in Section
66A.8(1), above, after receiving special review
and approval by the Loan Committee. (Added by
Ord. 100-94, App. 3/11/94; amended by Ord. 2-01,
File No. 001969, App. 1/12/2001)

SEC. 66A.9. ELIGIBLE USES OF LOAN
PROCEEDS.

(1) Seismic Rehabilitation Costs. The

principal amount of any Seismic Safety Loan
may be used to pay the following costs, provided
such costs are necessary for seismic safety rea-
sons or legally required for completion of Seismic
Strengthening or occupancy of a UMB:

(a) Seismic Strengthening of UMBs;

(b) Soft costs directly associated with the
Seismic Strengthening, including but not limited
to architectural fees, engineering fees, develop-
ment of tenant protection plans, loan packaging
fees, permit fees and escrow and closing fees and
costs;

(c) Replacement and/or restoration of fin-
ishes disturbed during performance of the Seis-
mic Strengthening to their condition existing as
of the date of commencement of the Seismic
Strengthening;

(d) Remediation or reduction of toxic mate-
rials disturbed during Seismic Strengthening in
accordance with applicable federal. State or local
laws; and

Supp. No. 1, September 2006

Sec. 66A.9.

San Francisco - Administrative Code

4432

(e) Residential tenant relocation costs, as
required by applicable laws.

(2) Life/Safety Code Compliance and Dis-
ability Access. Up to 25 percent of the seismic
construction hard costs portion of any Seismic
Safety Loan may be used, to the extent legally
required for completion of the Seismic Strength-
ening of or to permit occupancy of a Property, to
pay costs of improvements to the Property to
protect the life or safety of or to provide legally
required disability access for occupants of the
Property In the event the Loan Committee de-
termines that greater than 25 percent of the
amount of a Seismic Safety Loan is generally
requested to complete the work described in this
Section 66A.9(2), the Loan Committee may rec-
ommend to the Board of Supervisors that this
Section be amended to increase the 25 percent
cap. (Added by Ord. 100-94, App. 3/11/94; amended
by Ord. 237-96, App. 6/11/96; Ord. 2-01, File No.
001969, App. 1/12/2001)

SEC. 66A.10. BIDDING
REQUIREMENTS; MINORITY/WOMEN
BUSINESS ENTERPRISES.

(1) Prior to applying for a Seismic Safety
Loan, each Applicant shall obtain a minimum of
three qualified bids for performance of the work
to be financed by a Seismic Safety Loan. All three
bids must be included with an application. At
least one of those bids shall be from a contractor
and/or engineer, whichever type of professional
with whom the Applicant intends to enter into a
contract for performance of Seismic Strengthen-
ing, which has been certified by the City's Hu-
man Rights Commission, pursuant to Adminis-
trative Code Section 12D.A.6(B)(1), as an MBE
or WBE as defined in Administrative Code Sec-
tion 12D.A. In cases where a Borrower wishes to
enter into a negotiated bid with a contractor, the
Borrower must demonstrate to the Program Ad-
ministrator that a good faith effort was made to
notify MBE and WBE contractors of the work to
be performed. The Program Administrator shall
make available to Applicants a list of certified
MBEs and WBEs from which such bids may be

solicited. In no event shall the Applicant be
required to pay any bid preparation fee to the
MBE or WBE.

(2) It is the goal of the Board of Supervisors
that 25 percent of all Seismic Safety Loan pro-
ceeds disbursed in the Program be paid by Bor-
rowers to contractors who are MBEs and/or
WBEs. (Added by Ord. 100-94, App. 3/11/94;
amended by Ord. 2-01, File No. 001969, App.
1/12/2001)

SEC. 66A.11. LOAN APPLICATION
PROCESS.

Loan application information and forms may
be obtained from the Program Administrator, or
such other location or individual as may be
determined by the Program Administrator. The
application package will indicate procedures for
returning completed applications. (Formerly Sec.
66A.12; added by Ord. 100-94, App. 3/11/94;
renumbered by Ord. 2-01, File No. 001969, App.
1/12/2001)

(Former Sec. 66A.11 was repealed by Ord. 2-01.)

SEC. 66A.12. INITIAL REVIEW OF LOAN
APPLICATIONS BY FINANCIAL
CONSULTANT.

Applicants shall submit completed applica-
tions to the Program Administrator for an initial
review of consistency with program require-
ments. The Program Administrator shall then
take one of the following actions:

(1) Return any incomplete or insufficient
loan application to the Applicant, together with a
brief explanation of any additional information
needed to complete the application; or

(2) Transmit the complete loan application
to the Financial Consultant for review. The Fi-
nancial Consultant would then (a) assess the
application to make sure that it meets the mini-
mum criteria set forth in Sections 66A.4, and (b)
develop a summary of the loan package that will
aid the review and d